New York, July 10, 2026, 06:32 EDT
Tech stocks in the U.S. were on track for a weaker start Friday, with SK hynix (KRX:000660; NASDAQ:SKHYV) launching a $26.5 billion offering on Nasdaq. Investors are watching to see if AI demand can handle a deal this size without triggering selling in other positions. Nasdaq-100 futures dropped 0.6%. S&P 500 and Dow futures were steady.
Investors sold off U.S. memory-chip stand-ins early, with Micron Technology NASDAQ:MU sliding 3.2% premarket after a 4.5% jump Thursday. Western Digital NASDAQ:WDC fell 2.8%, and Seagate Technology NASDAQ:STX lost 2.7%. Dan Coatsworth, head of markets at AJ Bell, said demand for the deal was “stronger than some people might have expected” and that the memory rally may have “taken a breath rather than peaked.” Reuters
Orders for the deal came in strong, with the book more than seven times subscribed. The SK hynix ADRs—certificates letting U.S. investors trade the Korean stock—priced at $149, coming in 2.7% over the stock’s three-day Seoul average. SK hynix leads on high-bandwidth memory, the quick chips that power AI processors. Its forward price-to-earnings is about 5.8 times, cheaper than Micron’s 7 times, putting SK hynix at a 17% discount. “It’s the purest large-cap way” for U.S. investors to get exposure to AI memory, Reflexivity’s Giuseppe Sette said. Reuters
| Allocation metric | SK hynix | Micron | Investor read-through |
|---|---|---|---|
| Forward P/E | 5.8 times | 7.0 times | SK hynix trades at a 17% discount |
| Friday signal | ADRs at $149 | Shares off 3.2% before open | Shows direct demand vs. proxy selling pressure |
| U.S. market access | Nasdaq line just launched | Already on Nasdaq | Managers get access to HBM top name |
The move matches what you’d expect from traders rotating into the new listing, but it isn’t proof. If Micron’s premarket drop sticks, its rise since Wednesday’s close would be about 1.2%. That would erase close to three-quarters of Thursday’s earlier jump before regular trading starts.
Thursday’s rally came on thin volume. The PHLX semiconductor index jumped 3.06%, but just 14.7 billion shares traded on U.S. exchanges—about 36% below the 20-day average of 22.9 billion. The Nasdaq Composite was up 1.30% and the S&P 500 rose 0.81%. “This is still very much an AI bull market,” Baird strategist Ross Mayfield said. But he added the low turnover makes Friday’s allocation test more important. Reuters
| Measure | Thursday close | Friday premarket |
|---|---|---|
| S&P 500 | 7,543.66, gained 0.81% | Futures off around 0.1% |
| Nasdaq Composite / Nasdaq-100 futures | 26,206.89, rose 1.30% | Futures down roughly 0.6% |
| Micron | Closed up 4.5% | Down 3.2% before the bell |
Friday’s shares traded on a “when-issued” basis, so ownership can shift before the standard settlement date. Nasdaq said it will move the SKHYV ticker to SKHY on Monday, July 13. Settlement is due the following day, Tuesday, July 14. With a price of $149 a share, the deal would create around 177.9 million ADRs. NASDAQ Trader
Funding pressure is building. In the equity repo market, where stocks back short-term loans, financing costs jumped to about 200 basis points above the fed funds rate near the end of June, and stayed 89 basis points higher by the quarterly read; one basis point is 0.01 percentage point. Primary dealers had $211 billion in equity-financing exposure. That tally versus investable market value climbed 50% in a year. “The risk of a funding spike may be with us for the foreseeable future,” Martin Tobias at Morgan Stanley NYSE:MS said. Reuters
Earnings are getting tougher. S&P 500 profits for the second quarter are now expected to jump 23.4% from a year ago, above the 15.2% analysts saw at the start of 2026. Tech-sector profit is predicted to climb 65.5%. Bruce Zaro at Granite Wealth Management said tech names might have to clear a much bigger bar to push their stocks up.
But the sector rotation call might be off. Middle East turmoil gives another reason to pull back from technology—Brent crude is on track to end the week up 5%, U.S. crude up 4%, and tanker traffic through Hormuz is still almost at a halt. “There’s still a substantial risk premium,” said Vandana Hari at Vanda Insights. Another oil spike could push inflation and bond yields higher, drowning out any message from the listing. Reuters
Investors should look at the combination of moves, not just SK hynix’s opening level. If SK hynix starts trading close to $149 and Micron steadies, that may mean new money is coming into the space. A strong SK hynix debut but bigger losses in U.S.-traded chip names would hint at buyers rotating within the group. But if SK hynix stumbles and chip stocks fall in general, that’s a bigger warning sign—AI demand is strong, but there’s still a cap on how much the market will fund it.
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