U.S. equity futures were mixed on Friday as investors looked ahead to the start of second-quarter earnings season while continuing to assess geopolitical risks in the Middle East and strong momentum in Asian technology stocks.
“Steady earnings fundamentals continue to anchor index volatility, Q2 results will be key to confirm this,” Barclays strategist Emmanuel Cau wrote in a note.
“Q2 results will be crucial in reconnecting price action with fundamentals, determining whether markets can extend gains from here and affirming sector/factor leadership.”
Gold remained under pressure heading into the weekend, while crude oil held onto most of its recent gains amid ongoing uncertainty surrounding the conflict between the United States and Iran. Japanese markets also attracted attention after the government proposed measures to increase domestic pension fund investment, and SK Hynix (USOTC:HXSCL) completed one of the largest ADR offerings ever seen in the United States.
Pension Reform Boosts Japanese Markets
Japanese government bonds and the yen strengthened after Finance Minister Satsuki Katayama said the government intends to encourage large pension funds, including the $2 trillion Government Pension Investment Fund (GPIF), to increase exposure to domestic assets.
The initiative could redirect significant capital toward Japanese stocks and bonds while supporting the currency if overseas allocations are reduced. Investors are also awaiting the government’s “Honebuto” economic strategy, due on 21 July, which is expected to include investment plans for artificial intelligence, semiconductors and energy.
SK Hynix Draws Strong Investor Demand
SK Hynix (USOTC:HXSCL) priced its U.S. ADR offering at $149 per share, raising approximately $26.5 billion in one of the biggest semiconductor equity offerings on record.
The offer was priced at about a 3% premium to the previous closing price in Seoul, while Reuters reported that investor demand exceeded the number of shares available by more than seven times.
Asian Markets Outperform Europe
Asian equity markets posted strong gains, led by semiconductor shares. South Korea’s Kospi rose roughly 5%, supported by Samsung Electronics, while Japan’s Nikkei 225 also advanced.
European markets were more subdued. The STOXX 600 traded close to unchanged after Thursday’s AI-led rally as investors focused on renewed geopolitical risks and the potential impact on inflation and global trade.
In the United States, S&P 500 futures slipped 0.2%, while Dow Jones futures added 0.1%.
Oil Retains Weekly Gains
Oil prices remained higher, with Brent and WTI both heading for strong weekly gains despite easing from the week’s highs as concerns over supply disruptions through the Strait of Hormuz moderated.
Gold, silver and platinum all remained on course for weekly declines as investors reassessed the outlook for inflation and interest rates.
Delta to Set the Tone for Earnings Season
Attention now shifts to second-quarter corporate earnings.
Delta Air Lines (NYSE:DAL) is scheduled to report results later today, with Wall Street expecting adjusted earnings per share of $1.51 on revenue of $17.53 billion, including passenger revenue of $15.63 billion and cargo revenue of approximately $231.6 million.
The airline’s outlook will be closely watched for signs of consumer travel demand and the health of the broader economy.
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