Market Wrap US-Europe 10 July: SK Hynix Soars 13 Percent in its Nasdaq Debut as the S&P 500 and Nasdaq Cap a Turbulent Week Higher and Europe Ends Mixed

Wall Street closed higher on Friday, capping a week of sharp swings with a memory-chip milestone, as SK Hynix jumped 13 percent in its Nasdaq debut and Meta Platforms extended a powerful run, while European markets ended little changed and volatility receded further on hopes for a diplomatic channel between Washington and Tehran.

In New York, the S&P 500 added 0.42 percent to 7,575.39, the Nasdaq Composite rose 0.29 percent to 26,281.61 and the Dow Jones Industrial Average gained 0.29 percent, or 149.60 points, to 52,637.01. On the week, the S&P 500 ended about 1.2 percent higher, the Nasdaq about 1.7 percent and the Dow about 0.5 percent lower, our calculation against the 2 July closes, with US markets shut on 3 July. The session belonged to SK Hynix, whose American depositary receipts opened at 170 dollars against a 149 dollar offer price that raised 26.5 billion dollars, and closed at 168.49 dollars, up 13.08 percent, in a listing CNBC described as giving US investors direct access to South Korea’s second most valuable company. The stock trades as SKHYV and moves to its permanent SKHY ticker next week. Meta Platforms climbed 5.97 percent to 669.21 dollars, taking its weekly advance past 14 percent, its largest since February 2024 according to CNBC, after a Reuters-reported internal memo pointed to a custom AI chip effort. Circle gained 4.97 percent after it said the Office of the Comptroller of the Currency approved it to operate as a trust bank, and WD-40 surged 10.65 percent on an earnings beat and raised guidance, while Delta Air Lines slipped 1.81 percent despite beating second-quarter estimates. Moderna, down 10.83 percent, and CrowdStrike, down 5.66 percent, were among the steepest S&P 500 decliners.

In Europe, the Stoxx 600 closed marginally higher, up 0.04 percent, with Milan’s FTSE MIB up 0.44 percent, London’s FTSE 100 up 0.24 percent and Paris’s CAC 40 up 0.15 percent, while Frankfurt’s DAX slipped 0.20 percent and the Euro Stoxx 50 eased 0.23 percent. Vodafone jumped 12.62 percent to 110.10 pence after e& agreed to sell its entire 16.21 percent stake for 5.95 billion dollars to Xavier Niel’s Vega vehicle, the deal we covered in detail on Friday, and easyJet soared about 13.6 percent after it said it is weighing a 7.7 billion dollar takeover bid from Apollo Global Management, setting up a bidding contest with Castlelake, whose earlier 7.3 billion dollar offer it had accepted. Technology was the region’s laggard.

Asia set the tone earlier, with Seoul’s Kospi up 2.52 percent at 7,475.94, a rebound so fast that the Korea Exchange briefly triggered a buy-side sidecar after Kospi 200 futures surged more than 5 percent, and Tokyo’s Nikkei 225 up 1.20 percent at 68,557.73 as SoftBank gained over 11 percent. Most Gulf markets and the Egyptian Exchange were closed on Friday and resume on Sunday, while the UAE bourses traded, with Dubai’s DFM General adding 0.86 percent to 6,042.55. Across assets, the VIX fell 5.05 percent to 15.04, extending its retreat, while the 10-year Treasury yield rose 2.2 basis points to 4.561 percent and the two-year added 4.6 basis points to 4.208 percent as investors tracked regional developments. Bitcoin rose 0.96 percent to about 63,811 dollars. Brent crude settled 0.39 percent lower at 76.00 dollars a barrel, still about 6.2 percent higher on the week, our calculation, as covered in our commodities wrap. CNBC reported, citing Kpler, that tanker traffic through the Strait of Hormuz slowed to 13 vessels on Wednesday against an average of 33 a day the previous week, and, citing an MS Now report, that Qatar and Pakistan are mediating between Washington and Tehran after President Trump said Iran had called to make a deal. Separately, the US Commerce Department moved on Friday to ease export controls on the UAE, granting the UAE government, Abu Dhabi’s G42 and its cloud arm Core42 license exceptions for certain advanced-computing equipment, CNBC reported, with the rule scheduled for official publication on Tuesday 14 July.

Why it matters: For the Gulf, the week ends with three supportive signals. The diplomatic track, in which Qatar is again playing a mediating role, is compressing the volatility premium that built through the week of tanker attacks and blockade threats. The US move to ease advanced-computing export controls is a concrete step for the UAE’s AI buildout and for the region’s technology ambitions more broadly. And the strength of the SK Hynix debut confirms that the memory cycle underpinning global AI demand remains intact, a relevant marker for the Gulf sovereign funds positioned in the sector. For the region’s oil exporters, crude ending the week about 6.2 percent higher, our calculation, keeps revenues supported even as the demand outlook softens.

Outlook: The calendar turns quickly. OPEC’s monthly report is due on Monday 13 July, the US June inflation report lands on Tuesday 14 July and will shape the Federal Reserve path, and the second-quarter earnings season builds through the week. SK Hynix shifts to its permanent SKHY ticker next week. The swing factors remain the reported mediation between Washington and Tehran and the pace of tanker traffic through Hormuz, which will steer oil, yields and the volatility complex together.

Table 1 – US and Europe, ranked by daily change:

Table 2 – Asia and UAE, ranked by daily change (other Gulf markets and Egypt closed Friday):

Table 3 – Rates, FX and crypto:

Sources: CNBC.

Get Complimentary Insights

Follow us