Global stocks turned in a mixed performance at the close of the week, as investors continued to focus on developments in the artificial intelligence sector — particularly the anticipated Nasdaq listing of South Korea's SK Hynix — against a backdrop of escalating geopolitical tensions in the Middle East.

US stocks

American stock indices stabilised in volatile trading on Friday, as AI stocks returned to the fore supported by SK Hynix's strong Nasdaq debut, while pressure on chip stocks capped broader market gains.

SK Hynix shares rose roughly 14% in their first US trading session, after the company raised approximately $26.5 billion through an American Depositary Receipt offering — a move that gives American investors direct access to the world's largest producer of high-bandwidth memory chips used in AI applications.

By midday, the Dow Jones Industrial Average was up 0.21% and the S&P 500 up 0.13%, while the Nasdaq was flat near its previous levels.

The Philadelphia Semiconductor Index fell 0.8%, and Micron shares dropped roughly 3% as profit-taking continued across the sector, while Meta shares jumped more than 6% to reach their highest level since April.

Despite a recent pullback in chip stocks driven by concerns over elevated valuations and the possibility of a slowdown in AI spending, companies tied to the sector continue to post strong gains. SK Hynix shares have risen roughly 630% over the past year, while Micron shares have climbed approximately 711% over the same 12-month period.

Chip stocks also fell in pre-market trading, with Micron down 3.2%, Western Digital down 2.8%, and Seagate Technology down 2.7%.

On the positive side, expectations of strong earnings growth for US companies supported sentiment, with estimates pointing to a 24% year-on-year rise in S&P 500 earnings for the second quarter, driven by the technology sector.

Investors are looking ahead to next week's US inflation data and major bank earnings, amid ongoing US-Iran geopolitical tensions that are heightening concerns about inflation and the Federal Reserve's monetary policy path.

European stocks

European markets were subdued, with the pan-European Stoxx 600 rising just 0.04% to 642.42 points, though it remained on track to post a weekly loss that would end a four-week winning streak.

Mining shares led gains with a 2% advance, and the travel and leisure sector rose 1% on the back of airline stocks, with easyJet jumping 13.4% after it approved a £5.7 billion takeover offer.

The chip sector came under pressure, with shares in Siltronic, Süss MicroTec, and ASML declining amid concerns over AI company valuations.

Japanese stocks

Japanese equities extended their advance, supported by gains in technology and chip stocks, with the Nikkei 225 rising 1.2% to close at 68,557 points, while the Topix gained 0.39%.

Silicon wafer specialist Sumco surged 15.4%, SoftBank rose 10.65%, and Advantest gained 2.3%.

The gains were driven by rising US technology stocks, following Micron's announcement of plans to invest more than $250 billion in the United States through 2035.

Expectations that Japanese pension funds would redirect investments toward domestic assets also supported the yen's rise and an improvement in the bond market.

Asian stocks

Asian markets recorded strong gains, driven by technology stock advances, even as investors continued to monitor tensions between Iran and the United States.

South Korea's Kospi index rose 2.5%, with SK Hynix shares up 2.2% in Seoul, while Japan's Nikkei gained roughly 1.9%.

Hong Kong's Hang Seng index rose 1.8%, Australia's S&P/ASX 200 gained 0.5%, and India's Sensex advanced 0.9%.

In currency markets, the dollar fell against the yen to 161.56 yen, while the euro rose to $1.1444.

Global markets in the period ahead remain subject to two principal factors: the ability of the AI sector to sustain its investment momentum, and the extent to which geopolitical developments feed through to inflation, energy prices, and monetary policy.

Oil prices

Oil prices were on course for strong weekly gains, driven by renewed concerns over global crude supply as Middle East tensions persisted and tanker traffic through the Strait of Hormuz — one of the world's most important energy corridors — slowed.

Brent crude rose 0.38% in Friday's trading to $76.59 per barrel, while West Texas Intermediate (WTI) advanced 0.24% to $72.25 per barrel. Brent is heading for a weekly gain of roughly 6%, compared with roughly 5% for WTI.

The gains come amid fears that military escalation between the United States and Iran could disrupt oil trade flows, after the passage of oil tankers through the Strait of Hormuz slowed. Prior to the crisis, the strait carried roughly 20% of the world's daily oil and gas supplies.

The International Energy Agency said the escalating tensions could alter its earlier forecast of a substantial oil market surplus in the coming year, given the likelihood of continued supply disruptions.

Despite rising prices, signs of easing tensions capped gains, after reports of diplomatic efforts to resume negotiations and indications that Iranian energy facilities had been spared from targeting, which alleviated some market concerns.

In a separate development, the International Energy Agency cut its forecast for Russian oil production following the impact of Ukrainian attacks on energy infrastructure, with Russian petrol output falling to roughly 65% of the seasonal demand average due to stoppages at a number of refineries.

Investors are closely monitoring developments in the Strait of Hormuz and the trajectory of geopolitical tensions, viewing them as the most influential factor shaping oil price trends in the period ahead.