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CNBC Daily Open: Relief rally rolls on as Mideast deal boosts sentiment
The U.S. markets opened the trading week on a high note following the U.S.-Iran framework agreement aimed at ending the Mideast war. The Dow Jones Industrial Average hit a fresh record, and tech stocks rallied sharply, driving the Nasdaq to its best one-day performance since late March. At the G7 summit in Évian-les-Bains, President Donald Trump confirmed the deal, stating it is signed and the Strait of Hormuz is already partially opened. He noted ships are starting to move out, with full opening expected by Friday. The formal signing is scheduled for Friday in Geneva, with Vice President J.D. Vance attending. Vance told CNBC that while many details remain, the strait is expected to be opened toll-free for the long term, emphasizing that the U.S. holds all leverage regarding Iran's nuclear program. Crude prices closed about 5% lower in New York on Monday but stabilized in early Asian trading Tuesday. Against the backdrop of easing Mideast tensions, several central bank meetings are scheduled this week. The Bank of Japan is widely expected to raise rates to their highest level in three decades. The Reserve Bank of Australia is expected to pause after three consecutive hikes. Kevin Warsh will chair his first Federal Reserve meeting, with no rate change anticipated but his guidance closely watched. The AI and tech-fueled rally continues. SpaceX surged another 20% in its first full day of trading, with underwriters exercising the greenshoe option, bringing its IPO haul to $85.7 billion and a market cap above $2.5 trillion. Nvidia is reportedly planning a $20 billion bond offering, its first debt market tap since 2021. In other news, Fox Corp. has agreed to acquire Roku for approximately $22 billion, or $160 per share in a cash-and-stock transaction. Fox will fund the cash portion with cash on hand and new debt, including a $12 billion loan. The deal marks another chapter in media consolidation.