Rising global geopolitical tensions and anticipation surrounding South Korean chipmaker SK Hynix's Nasdaq debut weighed on U.S. stock futures on Friday, with the S&P 500 and Nasdaq edging lower after Wall Street's recent rally, Reuters reported.
Dow futures edged higher on Friday, while S&P 500 and Nasdaq futures slipped after the two benchmark indexes ended the previous session in positive territory, supported by a rally in semiconductor stocks.
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The S&P 500 and Nasdaq remained on course for weekly gains as enthusiasm around artificial intelligence continued to support technology shares.
SK Hynix priced its American Depositary Receipts at $149 apiece, raising about $26.5 billion in what Reuters said is set to become the world's second-largest share sale after SpaceX's IPO last month.
The strong investor response has fuelled hopes that the recent pullback in memory-chip stocks may be temporary despite valuation concerns.
However, semiconductor stocks weakened in premarket trade, with Micron Technology, Western Digital and Seagate Technology declining after recent gains.
Investor sentiment was also weighed down by renewed geopolitical tensions after Iranian armed forces launched attacks on U.S. military infrastructure in Gulf states following recent U.S. strikes on Iran, reviving concerns over the potential inflationary impact of higher energy prices.
According to Reuters, New York Fed President John Williams said he does not expect the conflict to trigger a sustained rise in energy prices this year.
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Investors are also awaiting Federal Reserve Chair Kevin Warsh's testimony before lawmakers next week and the start of the second-quarter earnings season, with technology companies expected to lead profit growth.
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