Finance

South Korean memory chip giant SK Hynix soared 13% in its first day of U.S. trading after raising approximately $26.5 billion in its initial public offering. The listing represents the largest U.S. debut by a foreign company to date and was more than seven times oversubscribed by investors. This strong performance underscores continued high demand for the high-bandwidth memory chips required for AI infrastructure.

A new monetary policy report from the Federal Reserve indicated that inflation remains elevated, running nearly double the 2% target as of May. The central bank cited the ongoing AI buildout, recent tariffs, and energy cost volatility as primary factors keeping price pressures high. Newly appointed Fed Chairman Kevin Warsh is scheduled to testify before Congress next week to address these macroeconomic challenges.

The 10-year Treasury yield climbed to 4.56% as investors monitored shifting developments in the Middle East and their potential impact on global supply chains. Although oil prices eased slightly on Friday, with West Texas Intermediate closing near $71 per barrel, concerns about potential rate hikes remain. Markets are currently pricing in the possibility of at least one more interest rate increase before the end of the year.