Finance

Defense and aerospace stocks have surged to all-time highs, with the iShares US Aerospace & Defense ETF achieving its first intraday record since early March. This rally has been led by drone manufacturers following orders for increased production, signaling a shift where these companies are increasingly traded with valuations similar to software and technology firms.

Newly appointed Federal Reserve Chairman Kevin Warsh is scheduled to testify before Congress next week following a report that highlights persistent inflationary pressures from tariffs and the ongoing U.S.-Israeli conflict with Iran. While the Fed maintained interest rates at 3.5% to 3.75% in its last meeting, markets are increasingly pricing in a potential rate hike by September to stabilize prices.

South Korean memory chip giant SK Hynix debuted on the U.S. market this week, with its shares climbing 15% as investors bet on the sustainability of the AI-driven memory crunch. The listing is viewed as a major test of the U.S. capital market's appetite for international semiconductor leaders during a period of high infrastructure spending.