Dow Jones Forecast: DJIA steady ahead of SK Hynix listing

US futures                                          

Dow futures 0.1%, S&P futures 0.15%  & Nasdaq futures 0.01%

In Europe                                                                        

FTSE 0.3% & DAX 0.03%

• U.S futures are steady after yesterday's gains
• SK Hynix lists on the Nasdaq 
• Investors take US-Iran developments in their stride
• Oil rises across the week

SK Hynix lodting keeps the AI trade in focus

U.S. futures are pointing to a mixed open on Friday after a strong rally yesterday as investors continue to weigh developments in the Middle East while looking ahead to the Nasdaq debut of South Korean chipmaker SK Hynix.

The three main U.S. indices closed higher on Thursday, led by gains in semiconductor stocks. The S&P 500 and Nasdaq are both on track for weekly gains, with the AI trade back in focus ahead of SK Hynix's high-profile U.S. listing.

The listing comes after SK Hynix's share price pulled back from record highs. Even so, the chipmaker has raised around $26.5 billion through the sale of American Depositary Receipts priced at $149.

The offering is set to be the world's largest share sale since SpaceX's record-breaking IPO. Stronger-than-expected demand suggests investor appetite for AI-related stocks remains healthy despite the recent pullback in the semiconductor sector.

Chipmakers have been among this year's strongest performers, driven by expectations of heavy investment in AI infrastructure and data centres. However, concerns over stretched valuations ahead of earnings season have recently prompted investors to take profits.

Geopolitical developments are also keeping investors cautious. The U.S. and Iran continue to exchange fire, and any further escalation could push oil prices higher, reviving inflation concerns and complicating the Federal Reserve's policy outlook.

Attention now turns to next week's U.S. inflation report and Federal Reserve Chair Kevin Warsh's testimony before the House Committee on Financial Services for further clues on the outlook for interest rates.

Corporate Movers

Marvell Technology, Intel and SanDisk are trading higher ahead of SK Hynix's Nasdaq debut as investors position for renewed strength across the semiconductor sector.

Delta Air Lines is down 3% despite beating earnings and revenue expectations for the second quarter.

Netflix is rising after reports that the company has explored adding live television channels and bundling its service with other streaming platforms.

Dow Jones Forecast – Technical Analysis

The Dow Jones continues to trade within a rising channel that has been in place since mid-April.

After reaching a record high around 53,350 near the upper boundary of the channel, the index has pulled back towards the midpoint and 20 SMA. The broader uptrend remains intact.

Buyers will look for a move back towards 53,350 and fresh record highs.

Initial support is located around 52,000. A break below this level would expose 51,325, where the lower boundary of the rising channel coincides with the June 22 swing low.

FX Markets – Dollar Softens

The U.S. dollar is edging lower alongside Treasury yields as investors continue to hope that U.S.-Iran peace talks can resume. Even so, markets continue to expect the Federal Reserve to raise interest rates before the end of the year.

USD/JPY has pulled back from a 40-year high as the yen strengthened after reports that Japanese authorities plan to encourage pension funds to increase domestic investment. Stronger-than-expected producer price inflation, which rose 7.1%, also supported the Japanese currency.

GBP/USD is edging higher amid a quiet UK economic calendar. Sterling has also been supported by expectations that Andy Burnham is close to becoming the UK's next Prime Minister after receiving strong backing from Labour lawmakers. His commitment to maintaining the government's fiscal rules has helped reassure investors.

Oil Holds Near Weekly Highs as Supply Risks Persist

Oil prices are edging lower on Friday but remain on track for strong weekly gains as renewed fighting between the U.S. and Iran and continued disruption to shipping through the Strait of Hormuz keep supply concerns elevated.

Brent is on course to gain around 7% this week, while WTI is set to rise around 6%. Although prices have eased from this week's highs, a geopolitical risk premium remains in place as shipping through the Strait has yet to return to normal, leaving uncertainty over when global supply flows will fully recover.