US stock market today: S&P 500, Nasdaq futures slip after tech-led rally; SK Hynix debut in focus

After a sharp rally in the previous session, US stock futures edged lower on Friday, 10 July, though they remained on track to post weekly gains.

Easing tensions in the Middle East following the recent flare-up in hostilities and a retreat in crude oil prices are expected to support investor sentiment. Market participants are also awaiting the debut of SK Hynix's American depositary receipts (ADRs).

Futures tied to the S&P 500 slipped 0.1% after a rally in chipmakers lifted the benchmark index to its highest level since mid-June. Nasdaq 100 futures and Dow Jones Industrial Average futures declined 0.38% and 0.21%, respectively.

On Thursday, Wall Street's benchmark S&P 500 rose 0.8%, while the Dow Jones Industrial Average gained 0.3%. The technology-heavy Nasdaq Composite climbed 1.3% to close at 26,206.89.

Chip stocks witnessed renewed buying interest this week, although the rally remained capped by fresh tensions in the Middle East. Investors are also looking ahead to the June-quarter earnings season for major technology companies to assess whether strong earnings can justify elevated valuations.

"Chipmakers have staged a strong recovery over the past few sessions, but investors now want proof that massive AI spending is translating into earnings growth. With the June-quarter earnings season set to begin next week, expectations are high for semiconductor companies and cloud giants," domestic brokerage firm Vested Finance said.

While chip stocks have led Wall Street's rally, the Magnificent Seven technology stocks have largely remained out of favour with investors, significantly underperforming the broader market this year.

Geopolitical tensions eased after reports suggested that the US and Iran would continue peace negotiations despite the recent escalation in hostilities. US forces carried out strikes on targets in Iran over two consecutive days in response to attacks on vessels in the Strait of Hormuz, triggering retaliatory strikes by Tehran on US military bases across the region.

Meanwhile, SK Hynix's market debut could set the tone for US trading on a day with no major economic data releases or scheduled speeches from Federal Reserve officials. The company raised $26.5 billion through an offering of American depositary receipts, which are set to begin when-issued trading on the Nasdaq Global Select Market.

Crude oil prices edge lower

Crude oil prices remained volatile, though they edged lower in Friday's trade, as global oil supplies continued to be disrupted by the limited number of vessels able to transit the Strait of Hormuz, one of the world's most critical energy shipping routes.

Vested Finance said, “Although fighting has eased, negotiations between the US and Iran are still ongoing. Oil traders are closely watching developments around the Strait of Hormuz, one of the world's most important shipping routes for crude oil.”

Brent crude futures slipped 1% to an intraday low of $75.36 a barrel. Following the interim peace between the US and Iran, prices have retreated to levels seen before the conflict escalated earlier this year.

Brent was trading near $72 a barrel before the conflict intensified in late February. WTI crude futures also declined 1.23% to $71.19 a barrel.

Meanwhile, the International Energy Agency (IEA) said on Friday that global oil demand is expected to decline in 2026 for the first time since 2020, as the Iran conflict disrupted oil production and exports across the Middle East.

(With inputs from Bloomberg)

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