CNBC Daily Open: Nvidia stars at Computex as markets hit records

Hello, this is Dylan Butts writing to you from Singapore. Welcome to the new edition of the Daily Open newsletter.

AI momentum is continuing to carry Wall Street to fresh milestones as investors turn their attention to Day 2 of a major technology conference in Taipei. 

But geopolitical and trade undercurrents refuse to fade quietly into the background, with more conflicting messages coming from Washington and Iran, and President Donald Trump issuing all too familiar tariff threats against a major trading partner. 

The S&P 500 hit yet another record close, while the Dow hit an intra-day high on Tuesday, as traders digested tech headlines from Computex — one of the world’s largest technology conferences held in Taipei.

Asia-Pacific markets also opened higher Wednesday, with Japan’s Nikkei 225 reaching a new record.

Key highlights from the event included Nvidia unveiling new PC processors developed with Microsoft, as the world’s most valuable company by market cap seeks to dominate every layer of the AI market. 

Nvidia CEO Jensen Huang was the star of the show, appearing alongside a number of major tech leaders. Highlighting the CEO’s massive influence on markets, Marvell shares surged 32% on Tuesday after Huang called the chip firm a potential “next trillion-dollar company.” 

Goldman Sachs CEO David Solomon told CNBC that investors have shifted decisively into “greed” mode, with markets poised to test an unprecedented fundraising wave for giant artificial intelligence firms. 

But as the AI space continues to drive investor optimism, geopolitics is proving an ominous overhang, with a permanent end to the U.S. and Iran conflict remaining elusive. 

U.S. Central Command said Tuesday that it had defeated multiple Iranian ballistic missiles and drones and launched defensive strikes in response to “attempted attacks.” 

It comes as the two sides continue to put out conflicting messages. President Trump and Secretary of State Marco Rubio have insisted that talks with Tehran remain active, despite Iranian media reports suggesting the negotiations had collapsed. 

Rubio also stated that Iran has continued to fire on commercial ships in the Strait of Hormuz and has mined “large segments” of the shipping route, indicating that explosives in the strategic sea lane are more widespread than previously acknowledged.

He added that Iran must agree to a deal with the U.S. that it will not charge a toll to transit Hormuz, will not fire on commercial ships and will help remove any mines it has laid in the strait. 

Disruptions to the Strait of Hormuz have kept oil markets on edge, even if prices have not yet fully reflected worst-case scenarios. West Texas Intermediate futures for July delivery gained over 1% to $94.81, while the international benchmark Brent crude for August delivery advanced 0.88% to $96.84 per barrel. 

In other political news, voters in California cast ballots on Tuesday in a primary that advanced top contenders for governor and Los Angeles mayor while also testing newly redrawn congressional maps as Democrats seek to tip the balance of power in the U.S. House of Representatives in November.

— Dylan Butts

Nuclear weapons could soon be hosted in more NATO nations — what it means for defense stocks

The U.S. is said to be considering expanding its nuclear weapons-hosting capability to more European NATO member states.

Six NATO member countries — the U.K., Germany, Italy, the Netherlands, Belgium and Turkey — currently form part of the alliance’s nuclear weapons-sharing arrangements, and are approved to host U.S. dual-capable aircraft capable of deploying nuclear missiles.

But this group could now be expanded to include additional NATO countries in Europe, according to the Financial Times, which cited three people who had been briefed on the highly confidential discussions.

— Hugh Leask