Updates after markets open

By Ragini Mathur and Avinash P

July 10 (Reuters) - Wall Street indexes steadied on Friday, as investors awaited the highly anticipated Nasdaq debut of South Korean chip bellwether SK Hynix, shifting focus from the latest escalations in the Middle East conflict.

AI trade takes center stage ahead of SK Hynix's 000660.KS high-profile U.S. listing, scheduled for later in the session.

The offering is set to be the world's biggest share sale after SpaceX's SPCX.O record-breaking IPO last month. The chipmaker raised about $26.5 billion on Thursday, by selling its American Depositary Receipts priced at $149 apiece.

The company's ADRs are indicated to open at $176.01, about 18% above their offer price.

"We've heard that it's (SK Hynix) oversubscribed and people want to own the stock. So I don't think it's going to be a disaster or cause any negative volatility. And in fact, if anything, once it starts trading, it could lift the entire chip sector as we move into the weekend," said Kathleen Brooks, research director at XTB.

Chipmakers have been among the biggest beneficiaries of this year's AI-driven rally, fueled by expectations of heavy spending by hyperscalers. But concerns over stretched valuations and profit taking have recently injected volatility into the sector.

Semiconductor stocks were under pressure on Friday, with memory-chip maker Micron Technology MU.O easing 1.6% after gaining 4.5% in the previous session. The Philadelphia SE Semiconductor index .SOX fell 0.5%, in choppy trading.

Meta Platforms META.O shares rose 6.1%, extending gains, which helped lift the communication services sector .SPLRCL up 0.9%. Eight out of 11 sectors were trading higher on the benchmark S&P 500 .SPX.

The S&P 500 and the Nasdaq were on track for weekly gains, while the blue-chip Dow was poised to break a four-week winning streak.

At 09:50 a.m. ET, the Dow Jones Industrial Average .DJI rose 35.60 points, or 0.07%, to 52,523.01, the S&P 500 .SPX gained 11.18 points, or 0.15%, to 7,554.82 and the Nasdaq Composite .IXIC gained 13.40 points, or 0.05%, to 26,220.29.

Geopolitical risks have kept investors on edge after the Iranian armed forces launched attacks on U.S. military infrastructure in the Gulf states on Thursday, following U.S. strikes on Iran's southern coastal and eastern provinces.

The latest escalation revived concerns about the inflationary impact of the war.

New York Federal Reserve President John Williams said on Thursday he did not expect Middle East hostilities to cause a sustained rise in energy prices for the rest of the year.

Next week's June inflation data will offer fresh insight into the Federal Reserve's likely policy path, while Fed Chair Kevin Warsh is also scheduled to testify before the House Committee on Financial Services.

Markets are pricing in at least one 25-basis-point rate hike by the end of 2026, according to LSEG data.

Delta Air Lines DAL.N dropped 2.5%, even after forecasting third-quarter profit above expectations.

Crypto-related stocks advanced, tracking gains in bitcoin BTC=.

Strategy MSTR.O gained 5%, while Coinbase COIN.O added 3.1%.

Earnings are set to gather pace next week. Analysts are expecting S&P 500 earnings to rise 24% from a year earlier, with technology companies driving much of the growth, according to data compiled by LSEG.

Advancing issues outnumbered decliners by a 1.79-to-1 ratio on the NYSE, and by a 1.08-to-1 ratio on the Nasdaq.

The S&P 500 and the Nasdaq Composite posted no new 52-week highs and no new lows.