The Dow Jones Industrial Average rose 0.6% shortly after trading began, while the benchmark S&P 500 gained 0.2%. The technology-heavy Nasdaq Composite was largely unchanged.
The cautious start followed a strong rally on Wall Street on Thursday after US President Donald Trump stepped back from threatened military strikes against Iranian targets, easing concerns about a wider conflict in West Asia.
Investor attention was firmly focused on SpaceX, which is set to begin trading in what is expected to be the largest initial public offering (IPO) ever.
The Elon Musk-led company, which plans to develop space-based artificial intelligence data centres, priced its shares at $135 each. The IPO raised around $75 billion and values the company at approximately $1.77 trillion.
The massive valuation is also expected to significantly boost Musk’s personal wealth, potentially making him the world’s first trillionaire.
Markets were also assessing reports that Washington and Tehran are moving closer to an agreement that could lead to the reopening of the strategically important Strait of Hormuz. The issue is expected to be discussed when leaders of the Group of Seven (G7) nations meet next week.
Hopes of reduced tensions in the region pushed oil prices lower. Brent crude futures fell as much as 5% during early trading, touching their lowest level since March before recovering some losses.
Among individual stocks, shares of software giant Adobe dropped 8% after the company announced that Chief Financial Officer Dan Durn will step down on June 15 to take over as CFO at semiconductor company Marvell Technology.
