US stock futures were mixed on Friday as investors paused after a chip-led rally and turned their attention to SK Hynix’s Nasdaq debut.

Dow futures edged higher, but S&P 500 and Nasdaq 100 futures slipped as memory-chip stocks pulled back in premarket trading.

The listing of South Korea’s SK Hynix is a major test of Wall Street’s appetite for AI infrastructure exposure after months of sharp gains and volatility in semiconductor shares.

Middle East tensions also kept investors cautious, with oil and inflation risks still feeding into the Federal Reserve rate debate.

5 things to know before Wall Street opens

1. Futures pause after a strong rally

Dow futures rose 109 points, or 0.21%, while S&P 500 futures were little changed. Nasdaq 100 futures lagged, slipping 0.38%.

The move followed a stronger Thursday session, when the main US indexes gained on renewed demand for chip and AI-linked stocks.

The S&P 500 and Nasdaq remain on track for weekly gains, but Friday’s early tone suggests traders are taking some profit before the next major catalyst.

2. SK Hynix debut tests AI appetite

SK Hynix priced its American depositary receipts at $149 each, raising about $26.5 billion.

The offering is expected to be the world’s second-largest share sale, behind SpaceX’s record listing last month.

AJ Bell analysts see the debut as slightly late in the cycle because memory shares have already pulled back from earlier highs.

Even so, strong demand for the deal suggests investors may view the recent memory-chip weakness as a pause rather than the end of the rally.

3. Memory stocks cool before the open

Semiconductor shares eased in premarket trading, led by memory names. Micron Technology fell 3.2% after a 4.5% gain in the previous session.

Western Digital dropped 2.8%, while Seagate Technology lost 2.7%.

The pullback reflects the market’s broader struggle with AI valuations.

Investors still believe data-centre spending will support chip demand, but they are becoming less willing to chase the sector without fresh earnings confirmation.

4. Middle East risk keeps inflation in focus

Geopolitical risk remains a drag after Iranian forces attacked US military infrastructure in Gulf states, following US strikes on Iran’s southern coastal and eastern provinces.

New York Fed President John Williams said he does not expect Middle East hostilities to cause a lasting rise in energy prices this year, but he avoided saying how he would vote at the July policy meeting.

Markets are still pricing at least one 25-basis-point rate increase by the end of 2026.

5. Earnings season starts to matter

Delta Air Lines reports before the bell, offering an early read on consumer demand and travel pricing. The broader earnings season gathers pace next week.

Analysts expect S&P 500 profits to rise more than 24% from a year earlier, with technology companies driving much of the growth.

That leaves the market with a high bar: AI needs to keep delivering, not just promising.

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Circle shares surged in premarket trading on Friday after the stablecoin issuer announced it had received final regulatory approval from the US OCC to establish a national trust bank.

At the time of writing, Circle shares were up 13.33% in premarket trading.

The regulatory approval allows the company to act as custodian for its own reserves and hold crypto assets on behalf of institutional clients.

OCC approval marks a key milestone

Circle said the final approval enables it to establish Circle National Trust and places the trust bank under the direct oversight of the OCC, the primary federal regulator for lenders and national trust banks.

Commenting on the approval, Circle Chief Executive Officer Jeremy Allaire described the development as a significant step for the digital asset industry.

“OCC approval to establish Circle National Trust marks a defining step in bringing blockchain technology and digital assets into the core of the US financial system,” Allaire said in a statement.

According to the company, operating under a national trust charter will allow it to expand its role in safeguarding digital assets while maintaining direct federal regulatory oversight.

Charter expands custody capabilities

The national trust bank charter allows Circle to serve as custodian for its own reserves, which back its stablecoin operations.

It also permits the company to hold crypto assets on behalf of institutional clients.

The approval comes as digital asset companies continue to broaden their presence in traditional financial services.

As regulatory hurdles have eased over the past year, firms in the sector have increasingly pursued banking licenses, custody businesses, and payment services.

The move reflects a broader effort by crypto companies to integrate more closely with regulated financial infrastructure while expanding their service offerings.

USDC remains a major stablecoin

Circle is the issuer of USDC, a dollar-pegged stablecoin designed to maintain a fixed value through a 1:1 peg with the US dollar.

Stablecoins are widely used within the cryptocurrency market to transfer funds between crypto tokens while minimizing price volatility.

Their fixed-value design makes them a commonly used medium for transactions across digital asset platforms.

Stock gains despite year-to-date decline

Friday’s rally follows a challenging year for Circle’s stock.

Despite the sharp premarket gains, the company’s shares had fallen 20.5% so far this year through the previous market close, according to LSEG data.

The decline had left Circle with a market capitalization of approximately $15.7 billion before Friday’s trading session.

Investors appeared to welcome the OCC’s final approval, sending the stock sharply higher as the market reacted to the company’s expanded regulatory status and new custody capabilities.

The approval gives Circle the authority to operate its national trust bank under direct federal supervision while broadening its role in providing custody services for both its reserves and institutional crypto clients.

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London’s FTSE 100 edged higher on Friday, supported by strong gains in Vodafone and easyJet following major corporate developments.

However, renewed tensions in the Middle East continued to weigh on investor sentiment, limiting broader market gains.

The blue-chip FTSE 100 index rose 0.08% to 10,480.31 points by 1053 GMT.

Meanwhile, the mid-cap FTSE 250 gained 0.1%.

Despite the modest advances, both indexes remained on track to record weekly losses.

Vodafone jumps after a major stake sale agreement

Vodafone emerged as the top performer on the FTSE 100, with its shares rising 12.6%.

The gains came after UAE telecommunications group e& announced that it would sell its stake in the British telecom company to the family investment vehicle of French billionaire Xavier Niel.

The transaction was valued at nearly $6 billion.

The announcement boosted investor confidence and helped lift the broader benchmark index despite cautious market sentiment.

easyJet leads FTSE 250 higher on takeover approach

Shares of easyJet climbed 14.5%, making it the strongest performer on the FTSE 250.

The budget airline said it had agreed in principle to a £5.7 billion ($7.65 billion) takeover approach from Apollo Global.

The proposed deal lifted sentiment across the travel and leisure sector, which rose 1.6% and led sectoral gains during the session.

The takeover news added to the day’s corporate activity, providing support for UK equities even as geopolitical concerns remained in focus.

Mining stocks advance alongside the broader market

Industrial metal miners also posted gains during the session.

The sector rose 0.8%, with Atalaya Mining, Antofagasta, and Rio Tinto advancing between 1.4% and 1.8%.

The gains in mining stocks further contributed to the positive performance of the UK’s main equity indexes.

Middle East tensions cap broader market gains

Despite the rally in several major stocks, investor sentiment remained cautious.

Renewed tensions in the Middle East weighed on markets after Iranian forces attacked US military infrastructure in Gulf states.

The development further undermined a three-week-old ceasefire and increased uncertainty surrounding the direction of the conflict.

The geopolitical uncertainty prevented stronger gains across the broader market, keeping investors cautious despite positive corporate news.

Financial stocks under pressure

Investment banks and brokerages declined 0.8%, making them among the weakest-performing sectors during the session.

St. James’s Place was one of the biggest fallers on the FTSE 100, dropping 8.7%.

The decline followed a report that Sovereign Wealth, one of the money manager’s largest partner firms, was in discussions to join a Swedish wealth management group.

Hays rises after upbeat profit outlook

Recruitment company Hays gained 13.8% after issuing a positive earnings outlook.

The company said it expects its annual operating profit to come in at the top end of market expectations.

According to the company, the improved outlook was supported by ongoing cost-cutting measures and higher consultant productivity.

The update was well received by investors and helped lift the stock sharply during Friday’s trading session.

Political developments remain in focus

On the political front, Andy Burnham moved closer to becoming Britain’s next prime minister after securing overwhelming backing from Labour lawmakers.

The support places Burnham in a strong position to succeed Keir Starmer, adding a political dimension to a session otherwise dominated by corporate deal activity and geopolitical developments.

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SK Hynix’s blockbuster US listing is already spawning a new wave of leveraged investment products, with several exchange-traded fund issuers preparing to launch products tied to the South Korean memory-chip maker’s American depositary receipts (ADRs), a move that analysts say could increase volatility in one of the world’s hottest AI stocks.

According to a Bloomberg report, ProShares, Leverage Shares, and Rex Shares are among the issuers planning leveraged and inverse exchange-traded products that will track SK Hynix’s newly listed ADRs.

At least six such products are expected to begin trading next week, according to information published on the issuers’ websites.

The launch comes after SK Hynix raised about $26.5 billion by pricing 177.9 million American depositary shares at $149 apiece, marking one of the largest US listings by a foreign company and underscoring investor appetite for companies benefiting from the artificial intelligence infrastructure boom.

Leveraged products arrive after a record debut

The introduction of leveraged products would allow investors to magnify their daily gains or losses from movements in SK Hynix shares.

Some products are designed to deliver twice the daily return of the underlying stock, while others aim to generate inverse returns for investors betting on declines.

The products mirror investment vehicles that have become hugely popular in South Korea and Hong Kong, where leveraged bets on SK Hynix have attracted billions of dollars in assets.

Bloomberg noted that one leveraged SK Hynix product issued by CSOP Asset Management in Hong Kong has grown into the world’s largest single-stock leveraged ETF, managing more than $16 billion before the recent correction in the company’s share price.

How leveraged products have played a role in the chip stock boom in S. Korea

Analysts say the rapid rise of leveraged single-stock products has already altered trading patterns in South Korea.

SK Hynix, Samsung Electronics, and leveraged products linked to the two companies now account for more than 70% of total trading value on South Korea’s $4.3 trillion equity market, contributing to sharp swings in the benchmark Kospi index.

“Some elements of retail activity appear to be increasingly momentum-driven, with growth in single-stock ETFs boosting trading volumes and volatility in mega-cap names,” said John Cho, Korea equities portfolio manager at JPMorgan Asset Management in the Bloomberg report.

“The emergence of leveraged ETFs is not viewed as a healthy sign, as it may be indicative of late-cycle retail behavior.”

South Korean investors have shown strong enthusiasm for leveraged semiconductor products this year.

According to the South China Morning Post, leveraged ETFs tracking SK Hynix and Samsung Electronics were the two most-purchased investment products by South Korean investors during the first five months of 2026, attracting cumulative investments of $311.8 million and $211.1 million, respectively, based on Korea Securities Depository data.

The country’s market for single-stock leveraged ETFs has expanded rapidly since launching in late May.

As of this week, the combined market capitalisation of 14 leveraged ETFs tracking Samsung Electronics and SK Hynix had reached 13.02 trillion won ($8.63 billion), while cumulative trading value exceeded 212 trillion won during their first month.

Why leveraged ETPs in the US could increase volatility

Market participants say the growing popularity of leveraged products could create fresh challenges as issuers rebalance their portfolios daily to maintain targeted returns.

The growing concentration of money in single-stock leveraged products has started influencing the price movements of the underlying shares themselves.

The launch of additional leveraged exchange-traded products (ETPs) in the US is expected to increase daily portfolio rebalancing activity, potentially adding to already elevated volatility.

Bloomberg Intelligence also noted that the sheer size of these products has made it harder for issuers to consistently deliver twice the daily returns of the underlying stock, resulting in tracking errors.

“US investors may encounter the same tracking challenges” seen in Hong Kong’s leveraged product tracking SK Hynix, said Rebecca Sin, ETF analyst at Bloomberg Intelligence.

“When demand significantly exceeds available inventory, ETP issuers can face difficulties sourcing shares and maintaining effective hedges, potentially leading to tracking errors versus the underlying stock.”

The Bank of Korea has also warned that leveraged single-stock ETFs could amplify volatility through mandatory daily rebalancing of spot and futures positions, increasing concentration risks in underlying stocks.

Those concerns have sparked criticism from some policymakers, with at least one opposition lawmaker reportedly calling for the products to be delisted.

With SK Hynix now firmly established on Wall Street following its record ADR offering, analysts expect the launch of leveraged US products to further increase global trading activity around one of the AI industry’s most closely watched semiconductor companies.

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Netflix Inc. shares NFLX edged higher ahead of Friday’s opening bell after a report said the streaming giant is exploring live TV channels and streaming bundles as it looks to boost subscriber engagement.

The stock rose in premarket trading after initially moving lower on the news. Netflix has lost more than 39% over the past 12 months as investors have grown concerned about slowing engagement, disappointing guidance and rising competition across the streaming industry.

Netflix explores live TV and streaming bundles

According to a Wall Street Journal report, Netflix executives have recently discussed adding live TV channels that would continuously stream certain programs or genre-based content.

The company has also explored bundling third-party streaming services, including NBCUniversal’s Peacock, into its platform, allowing users to subscribe through the Netflix app.

The discussions mark a potential strategic shift for the company, whose former co-founder Reed Hastings long emphasized simplicity and a streaming-first approach.

Netflix has also reportedly begun offering French broadcaster TF1’s programming to subscribers in France and is considering similar partnerships across Europe and Latin America.

The company is also evaluating future sports rights opportunities.

According to the report, executives are discussing bids for the 2030 and 2034 FIFA World Cup while continuing to avoid expensive long-term league rights.

Declining engagement remains a key concern

The strategic review comes as subscriber engagement has become a recurring topic among senior management.

The Wall Street Journal reported that executives identified weakening engagement during the company’s annual business review this spring, despite rising profits and industry-low customer defections.

Netflix’s share of US streaming time declined to 17% from 21% over the two years through March 2026, according to Nielsen.

Its share of total US TV viewership also fell to 7.8% in April, the lowest level since May 2025.

The company has faced increasing competition from Disney+, HBO Max, YouTube, Tubi and Roku Channel, while investors have also questioned its failed pursuit of Warner Bros. Discovery’s studio and streaming assets.

Netflix is expected to report earnings next week alongside its latest engagement report, which will provide updated viewership data for its programming.

Analysts watch churn and long-term growth

Citizens reiterated its Market Perform rating on Netflix, saying the company continues to benefit from the scale of its subscriber base and distribution network but faces growing questions over engagement.

Analyst Matthew Condon said rising churn could threaten Netflix’s competitive position.

“This is ultimately what is prompting Netflix to explore Live TV and subscription bundle partnerships,” Condon said.

He also warned that if engagement weakens further, Netflix’s competitive advantages could begin to diminish.

“The important thing for me is what is happening with ‘churn,’” said Uday Cheruvu, portfolio manager and analyst at Harding Loevner in the WSJ report.

“It may not be a concern yet, but it is something I am keeping my eye on.”

Netflix has also introduced lower-cost programming, including video podcasts, YouTube content and short-form videos from publishers such as BuzzFeed and Condé Nast, while continuing to expand its advertising business.

The company generated about $1.5 billion in advertising revenue last year and previously said it expects to double ad revenue in 2026.

Live programming could further strengthen that business because viewers cannot skip commercials during live broadcasts.

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