Traders work on the floor of the New York Stock Exchange (NYSE) on May 19, 2026 in New York.
Timothy A. Clary | AFP | Getty Images
Hello, this is Gail Krishnan from Singapore. Welcome to another edition of CNBC’s Daily Open.
We continue to monitor details emerging regarding the U.S.-Iran Framework Agreement, and the market is liking what it says so far. Stocks are at new highs, oil is falling and yields are retreating. All eyes will now be on how this plays out at a number of central bank meetings this week.
What you need to know today
US markets started the week higher following the Washington-Tehran deal aimed at ending wars in the Middle East. of Dow New records set, tech stocks soaring; Nasdaq It was the best one-day performance since late March.
At the G7 summit in Evian-les-Bains, President Donald Trump spoke with French President Emmanuel Macron and said a deal had been agreed. “I’m very happy to say it’s been signed. All the agreements have been signed, and this strait is already partially open. You know, they’re doing a little bit of a search looking for some mines that they’ve already found, but essentially the ships are starting to go out now. It will be fully open on Friday.”
The formal signing is expected to take place in Geneva on Friday. President Trump said he did not know whether he would attend the ceremony, but said Vice President J.D. Vance would attend. Vance told CNBC that while there are still many details to be ironed out, he expects the Strait of Hormuz “to be free and open in the long term.”
“We basically hold all the cards here. If the Iranians don’t make the long-term commitment that we want on their nuclear program, we don’t have to give them anything,” Vance said.
Full details of the agreement are expected to be announced after formal signing on Friday.
crude Prices closed around 5% lower in New York on Monday, but were stable in early Asian trading on Tuesday.
Central banks will be making a number of decisions against the backdrop of a clear decline in tensions in the Middle East. Yields are starting to fall on expectations that interest rate hikes to deal with the effects of the war may be delayed. But the trouble with inflation is its time lag, and the question policymakers will once again be faced with is whether inflation is temporary or whether it can be avoided.
The Bank of Japan is widely expected to raise interest rates to the highest level in 30 years in an effort to further normalize policy. Governor Kazuo Ueda was absent due to poor health, and Shin Uchida, Deputy Governor of the Bank of Japan, held a press conference after the meeting.
The Reserve Bank of Australia is widely expected to take a breather after three successive interest rate hikes as it weighs growth risks against inflation.
Kevin Warsh will lead his first meeting as Fed chairman. Positive developments in Iran and lower yields will undoubtedly ease pressure on him. No interest rate changes are expected at this meeting, but his guidance will be closely watched.
Meanwhile, the rise driven by AI and technology continues. space x It soared another 20% in its first full day of trading. The underwriters exercised a “greenshoe” option, raising the blockbuster IPO’s proceeds to $85.7 billion, pushing the company’s market cap to more than $2.5 trillion.
Join the AI borrowing frenzy – Nvidia. It is reportedly planning to issue $20 billion in bonds, entering the bond market for the first time since 2021.
— Gail Krishnan
And finally…
Fox buys streaming device maker Roku for $22 billion
Fox Corp. has reached an agreement to acquire Roku for about $22 billion, marking a new chapter in media consolidation as the industry grapples with changing dynamics and growing challenges.
Fox announced Monday that it would acquire Roku for $160 per share in a cash and stock deal. Fox plans to fund the cash portion of the acquisition with a combination of cash on hand and new debt. The company announced it had obtained $12 billion in financing for the transaction.
— Lillian Rizzo
