Traders work on the floor of the New York Stock Exchange (NYSE) as the opening bell rings on April 16, 2026.
Timothy A. Clary | AFP | Getty Images
Hello, my name is Hui Jie from Singapore. Welcome to another edition of CNBC’s Daily Open.
From stagflation warnings and stalled Iran negotiations to rising oil prices, red flags are everywhere.
But investors continue to push US (and some Asian) markets to new highs – is it misplaced optimism, or will advances in AI-driven technology sustain this rally amid geopolitical concerns?
What you need to know today
Warning signs for the Trump administration are flashing like a red light on a stalled F1 driver’s car.
Billionaire investor Ray Dalio has warned that the US economy is in a “period of stagflation” amid geopolitical tensions due to stalled peace talks with Iran and growing concerns about a protracted conflict in the Middle East.
Such a scenario usually surprises investors because it means central banks cannot cut or raise interest rates to fight inflation or stimulate growth.
But this time it’s different. of S&P500 And the Nasdaq Composite Index hit a new all-time high overnight, underscoring the fact that investors are missing the red flags. Asian markets traded mixed on Tuesday, but Korean markets traded mixedly. Kospi At one point, it hit an all-time high.
Dalio also said that lowering interest rates, a key demand of US President Donald Trump, was a mistake for Kevin Warsh, the candidate to succeed him at the Federal Reserve Board.
Global Brent futures rose 2.75% to close at $108.23 per barrel and West Texas Intermediate futures rose 0.39% to close at $96.77 per barrel as oil prices continued to rise as peace talks between Iran and the US stalled, further heightening concerns about energy supplies. Prices rose in early Asian time on Tuesday.
Iran has reportedly presented the United States with new proposals to reopen the Strait of Hormuz and end the war, while hinting at a postponement of nuclear talks. White House press secretary Caroline Levitt confirmed Monday that President Trump and his national security team have discussed the Iranian proposal.
Meanwhile, weeks before President Trump was scheduled to meet with Chinese President Xi Jinping, the Chinese government moved to block Meta’s $2 billion acquisition of Manas, a Singaporean artificial intelligence startup with Chinese roots. The acquisition was completed last December, and Meta said in March that “the transaction was in full compliance with applicable laws.”
Looking ahead, Asian investors will be keeping an eye on the Hong Kong market debut of Chinese optical computing provider Lightelligence, which raised HK$2.5 billion ($323 million) in an IPO.
— Lim Huijie
