U.S. stock futures showed a slight increase early Friday, as Wall Street braced for the highly anticipated IPO of SpaceX. The Nasdaq 100, S&P 500, and Dow Jones futures all traded higher.
This comes after a strong rally on Thursday, fueled by positive developments in U.S.-Iran relations and a rebound in tech stocks. Investors are now keenly focused on SpaceX’s debut, which is set to be the largest IPO in history and could significantly impact market dynamics.
U.S. stock futures edged higher early Friday, signaling a positive start to the trading day as Wall Street anticipates the monumental initial public offering (IPO) of SpaceX.
S&P 500 futures gained approximately 0.2%, while Nasdaq 100 futures saw a similar rise of 0.2%. Futures tied to the Dow Jones Industrial Average added 43 points, representing about a 0.1% increase.
The market's upward momentum follows a strong performance on Thursday, buoyed by a rebound in chip stocks and positive signals from President Donald Trump regarding a potential peace deal with Iran. The S&P 500 surged 1.75%, the tech-focused Nasdaq Composite jumped 2.54%, and the Dow Jones Industrial Average climbed an impressive 929.97 points, or 1.86%.
Asian markets also saw significant gains. South Korea's Kospi advanced 7.01%, while Japan's Nikkei 225 rose 3.4%. Australia's benchmark S&P/ASX 200 was up 1.54%.
President Trump indicated on Thursday that a peace deal with Iran was nearing finalization, stating, "The documents are in pretty final shape. It should be done and it should be done pretty quickly." He also assured that Iran would not possess nuclear weapons under the agreement. Equities had previously rallied during the day after Trump announced on Truth Social that he had called off planned strikes on Iran.
All eyes are now on SpaceX, Elon Musk's pioneering rocket company, as it prepares to make its public debut on the Nasdaq under the ticker symbol SPCX. The company has set a fixed price of $135 per share, valuing it at an astounding $1.77 trillion.
SpaceX intends to offer 555.6 million shares, aiming to raise $75 billion. This would make it the largest IPO in history, significantly surpassing Alibaba's $22 billion offering in 2014, which remains the largest U.S. IPO to date.
While a successful IPO could serve as a significant catalyst for the market, some investors express concerns about the offering's immense size potentially pressuring the market. The volatility often associated with IPOs could also trigger a rotation in tech leadership as capital is allocated to new issues.
"History indicates that large IPO issuance occurs during periods of strong equity market sentiment, but the added equity supply can cause some indigestion. Household equity exposure already sits close to an all-time high, which suggests they may sell existing holdings to fund these new positions," wrote Wells Fargo Investment Institute global equity strategist Douglas Beath. "Combined with the ongoing geopolitical tensions and the upcoming midterm elections, it could be one more reason for markets to display greater choppiness in the second half."
Beath added, "We remain favorable on the AI theme and the Information Technology sector but would not chase this run up," noting the sector's impressive 37% gain since April, compared to the S&P 500's 17% advance in the same period.
Thursday's rally has put the S&P 500 and Nasdaq Composite back into positive territory for the week, on pace to gain 0.14% and 0.39%, respectively. The Dow, however, is tracking for a slight weekly loss of 0.04%.
Investors will also be monitoring the preliminary reading of the Michigan Sentiment index for June on Friday morning.
Oil Prices Dip Amid Hopes of U.S.-Iran Accord, Despite Tehran's Rebuttal
Oil prices experienced a decline on Friday, following President Donald Trump's announcement of a framework agreement with Iran, which fueled hopes for an imminent resolution to the Middle East conflict.
U.S. crude oil futures for July delivery fell 1.61% to $86.30 per barrel. Meanwhile, August futures for the international benchmark Brent lost 1.75%, settling at $88.8 per barrel.
Speaking from the Oval Office, Trump expressed his expectation of an agreement being signed "over the next few days," a sentiment he has reiterated previously. He also indicated that the Strait of Hormuz would reopen once a deal is finalized.
However, Tehran has reportedly pushed back against Trump's claims. Iran's state-affiliated Fars news agency, citing a Telegram post, stated that Tehran has not approved any draft text for a Memorandum of Understanding with Washington.
—Lee Ying Shan
Alibaba Eyes Acquisition of Grocery Delivery Firm Pupu for $1.5 Billion
Alibaba has reportedly offered $1.5 billion to acquire Chinese grocery delivery company Pupu, aiming to bolster its e-commerce market share against rivals like Meituan. The move, detailed by Bloomberg citing sources familiar with the matter, suggests a potential bidding war, as Pupu's valuation in Alibaba's offer significantly exceeds a previous $600 million bid from Sun Art Retail, an Alibaba affiliate backed by DCP Capital.
This development follows Meituan's acquisition of Dingdong Fresh for $717 million in February, intensifying the competition between the two tech giants in China's dynamic food delivery and quick commerce sectors.
—Justina Lee
Woodside Energy Expands Stake in Browse Joint Venture
Woodside Energy's shares dipped over 2% following its announcement of plans to increase its stake in the Browse Joint Venture, located off the coast of Western Australia. The company exercised its pre-emptive right to acquire PetroChina's 10.67% share for $225 million, plus reimbursement of cash calls made since June 30, 2025.
This acquisition will raise Woodside's stake in the Browse Joint Venture, which is developing Australia's largest undeveloped offshore gas resource, to 41.27%. The project is expected to contribute significantly to energy security in the Asia Pacific region, with an estimated annual production capacity of 11.4 million tons of liquefied natural gas, liquefied petroleum gas, and domestic gas.
—Justina Lee
South Korea's KRX Briefly Halts Trading Amid Kospi Surge
South Korea's stock exchange operator briefly halted trading on the benchmark Kospi index after a significant spike, driven by optimism over a potential end to the Middle East conflict, which boosted Asian markets broadly. According to Yonhap news agency, program trading for Kospi-listed shares was suspended for five minutes shortly after the market opened.
The buy-side sidecar mechanism is triggered when the Kospi 200 Futures index rises by 5% or more for at least one minute. The Kospi was last seen trading 8.37% higher at 8,414.13.
—Justina Lee
Asian Markets Rally: Kospi Surges 7%, Nikkei 225 Gains 3%
Markets across the Asia-Pacific region experienced strong gains early Friday, with South Korea's Kospi leading the charge. The Kospi advanced 7.01% at the open, accompanied by a 3.25% rise in the small-cap Kosdaq index.
Japan's Nikkei 225 saw a 3.4% increase, while the broader Topix index was up 1.8%. Australia's benchmark S&P/ASX 200 gained 1.54%.
Hong Kong's Hang Seng index futures indicated a higher opening, trading at 24,376 compared to the index's previous close of 24,249.29.
—Justina Lee
Asia-Pacific Markets Poised for Higher Open Amid Peace Deal Hopes
Investor optimism regarding a potential end to the Middle East conflict, following President Donald Trump's remarks about an impending peace deal with Iran, has set a positive tone for Asia-Pacific markets, with expectations of a higher open on Friday.
Japan's Nikkei 225 futures suggested a strong opening, with Chicago futures at 66,665 and Osaka futures at 66,540, significantly above the index's previous close of 64,217.27.
Hong Kong's Hang Seng index futures were also trading higher at 24,376, indicating a positive start compared to the index's last closing value of 24,249.29.
Futures for Australia's S&P/ASX 200 traded at 8,794, surpassing its previous closing level of 8,633.20.
President Trump informed reporters on Thursday that the U.S. "just made a great settlement of the war with Iran," contingent on "the finalization of documents." He anticipates a signing ceremony between Iran and the U.S. within the coming days, emphasizing that the agreement is nearly complete and expected to be finalized quickly.
—Justina Lee
Sector Performance: Materials and Industrials Lead Gains on Thursday
On Thursday, eight out of the eleven Global Industry Classification Standard (GICS) sectors closed in positive territory. The materials sector emerged as the top performer, with a gain of 3.26%, closely followed by the industrials sector, which rose 3.25%. The information technology sector also saw a significant boost, driven by a rally in chip stocks, and closed up 2.94%.
Conversely, the energy sector was the session's laggard, shedding 2.06%. Consumer staples and real estate sectors also experienced declines, falling 0.47% and 0.12%, respectively.
— Lisa Kailai Han
CME Group to Offer 24-Hour Trading for WTI Crude and Gold Futures
CME Group announced plans to introduce 24-hour trading for its West Texas Intermediate (WTI) crude oil and gold futures contracts, pending regulatory approval. This move will provide traders with continuous access to these key commodities seven days a week.
The derivatives marketplace will launch 24/7 trading for its existing 1-ounce gold futures contract on July 26. A new, smaller crude oil contract, one-tenth the size of its Micro WTI futures, is slated for a launch on August 30.
—Darla Mercado
After-Hours Movers: Adobe, RH, and Lennar Face Stock Adjustments
Several notable companies experienced significant stock movements in after-hours trading:
- Adobe - The software giant saw its shares decline by nearly 6% after reporting a non-GAAP operating margin of 44% for its fiscal second quarter, falling short of the 44.5% estimate. The company also announced the departure of CFO Dan Dunn on June 15. Despite these headwinds, Adobe surpassed revenue and earnings expectations in its last reported quarter.
- RH - Shares slipped 1% following the home furnishings company's revenue growth guidance of 0.5% to 2.5% for the current quarter, which fell below the 4.3% anticipated by analysts. RH had previously reported an adjusted loss narrower than expected and exceeded revenue targets in its last quarter.
- Lennar - The home construction company's stock fell more than 2% after its second-quarter revenue of $7.94 billion missed analyst forecasts of $8.02 billion, according to LSEG. Deliveries also came in slightly below expectations at 20,519 units. Lennar's earnings per share were in line with estimates at $1.24.
— Lisa Kailai Han
Stock Futures Show Minimal Change in Evening Trading
Stock futures traded with little change late Thursday evening, indicating a steady start to Friday's trading session across the major averages.
Shortly after 6 p.m. ET, futures for the three main U.S. stock indexes were hovering slightly above the flatline.
— Lisa Kailai Han
