economy
CNBC Daily Open: Iran, Oman in talks on Hormuz; SpaceX is loyal to Nvidia on AI
Optimism over a Strait of Hormuz deal pushed the Dow to a record high and its fifth positive day in a row, while oil extends a cooling trend.
TL;DR
- Dow Jones Industrial Average reached a record high and achieved its fifth consecutive positive trading day.
- S&P 500 experienced a pullback, ending a four-day winning streak.
- Nasdaq showed a slight decline.
- Negotiations between Iran and Oman on commercial shipping in the Strait of Hormuz are reportedly in final stages, potentially giving Tehran more control over the vital oil route.
- President Trump expressed optimism about a potential U.S. deal to reopen the Strait of Hormuz.
- Both Brent and WTI crude futures saw a decrease in price.
- Fed Governor Lisa Cook stated her readiness to act on a rate hike, citing high inflation and risks to the employment side of the dual mandate.
- Traders are pricing in a 55% chance of a rate hike at the central bank's September meeting.
- SpaceX shares fell significantly after a surge in AI spending, though the company aims for $1 trillion in annual revenue by 2030.
- SpaceX announced exclusivity with Nvidia for its AI infrastructure processors.
- AMD's stock declined despite strong earnings, following SpaceX's decision to exclusively use Nvidia processors.
- Meta is launching Muse Code, its first coding agent, aiming to compete with Anthropic and OpenAI.
- Google is undergoing leadership changes with chief scientist Jeff Dean departing and DeepMind CEO Demis Hassabis shifting roles.
- Alphabet shares fell as the company reported negative cash flow for the first time and projected high full-year capital expenditures.
- Abdul El-Sayed won Michigan's Democratic Senate primary, defeating Rep. Haley Stevens.
- Michael Burry maintains a bearish outlook on the stock market, warning of a potential sharp sell-off reminiscent of the 1987 crash.
- Burry expressed skepticism about the AI boom, attributing demand to potentially unsustainable financing arrangements.