The U.S. stock market moved in a narrow range on Friday, with the S&P 500 holding near the flatline as Wall Street wrapped up a largely positive week. The benchmark index is on track for a weekly gain of nearly 1%, while the Nasdaq Composite is set to rise more than 1%. The Dow Jones Industrial Average lagged slightly, heading for a weekly loss of less than 1%.
Investors weighed a sharp rally from the previous session, driven by cooling oil prices and a temporary easing of Middle East tensions. President Donald Trump said Iran had called to make a deal, and officials from Qatar and Pakistan are working to restart talks between Washington and Tehran. “The muted stock market reaction to the re-escalation of Iran tensions this week is prime evidence that the market is looking past geopolitical tensions,” said Clark Bellin, president and chief investment officer at Bellwether Wealth.
Chip Stocks Weaken Ahead of SK Hynix NASDAQ Debut
Chip stocks traded lower ahead of SK Hynix’s U.S. market debut on the Nasdaq. The South Korean memory-chip maker priced its American depositary receipts at $149 each, raising $26.5 billion. The listing underscores strong investor demand for a major supplier in the AI chip supply chain. Micron Technology fell around 3%, while Marvell Technology and Lam Research lost more than 1%. Intel dropped nearly 3%, and Broadcom also traded lower. The iShares Semiconductor ETF declined 1.2%, and the VanEck Semiconductor ETF lost 0.8%.
Meta Rallies on AI Cost Report
Meta Platforms stood out among large technology stocks, rising nearly 6% on Friday and extending its five-session advance to more than 14%. The move placed Meta on track for its strongest weekly gain since February 2024. Bank of America maintained its buy rating after reviewing details tied to Meta’s AI infrastructure plans. According to Reuters, Meta plans to begin production of an in-house AI chip in September as part of a broader plan to double computing capacity. “Meta may have engineered significant cost savings to get capacity cost per MW well below our and Street expectations,” Bank of America analyst Justin Post wrote.
Circle Shares Jump After OCC Approval
Circle Internet Group shares surged more than 12% after the stablecoin issuer received final approval from the U.S. Office of the Comptroller of the Currency to establish a national trust bank. The approval moves Circle further into the regulated U.S. banking system, supporting its USDC infrastructure and adding federally regulated custody. Reserve management is planned as a future capability.
Economy and Stocks Move at Different Speeds
The stock market’s performance continues to diverge from the broader economy. The S&P 500 rose nearly 10% in the first half of 2026, while the Dow gained almost 9% over the same period. Meanwhile, economists say U.S. growth has slowed. “I think there’s this widespread perception the two should be in sync,” said Joe Seydl, senior markets economist at J.P. Morgan Private Bank. “But, from a purely analytical perspective, they’re two very different phenomena.” Mark Zandi, chief economist at Moody’s, added, “We’re growing. We’re not in recession. But we’re not going anywhere quickly.”
For Friday’s session, investors focused on weekly gains, chip stock weakness, Meta’s rally, Circle’s bank approval, and the first trading day for SK Hynix in the United States.
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