US equities rebounded, largely driven by a strong performance from the semiconductor sector. SK Hynix's American Depositary Receipt (ADR) offering generated overwhelming institutional interest, attracting nearly $200 billion in orders and being oversubscribed by more than seven times for its $24.5 billion offering, which could be the record for largest US IPO by a foreign company at a $149 per ADR listing price. This enthusiasm provided a significant lift to domestic chipmakers, with the Philadelphia Semiconductor Index surging 3.1%.
Contributing to the rally, Micron Technology announced an expanded investment plan of over $250 billion in the US through 2035, an increase from its prior $200 billion plan. This investment, focused on a major semiconductor campus in New York alongside expansions in Idaho and Virginia, is expected to create over 90,000 jobs. Micron also allocated $3 billion to strengthen the US semiconductor supply chain, including $500 million for GlobalWafers' silicon wafer facility in Texas, benefiting from strong AI-driven demand with $22 billion in secured memory chip supply.
Despite geopolitical concerns regarding Middle East tensions, particularly the fragile truce between the US and Iran, the markets found a conditional calm. Oil prices, specifically Brent crude, remained near $78 a barrel, not escalating into a "danger zone" that would validate worst-case scenarios for energy markets. The June FOMC minutes were also perceived as less hawkish than anticipated, easing concerns about an immediate interest rate hike, which further supported investor sentiment and allowed a rotation back into growth-oriented sectors like technology.
Overall, the Nasdaq 100 gained 1.6%, while the broader S&P 500 edged higher, extending overnight gains. Analysts noted that investors were willing to look past geopolitical uncertainties and focus on the strong earnings story tied to the AI structural theme. The market remains in an "uneasy equilibrium," with key factors like oil prices, escalation discipline in Washington, and the Federal Reserve's policy timing holding steady, albeit precariously.
