CNBC Daily Open: Record after record in major markets

Hello, my name is Leonie Kidd and I’m from London. Welcome to today’s Daily Open Newsletter.

Animal spirit optimism around AI and an unprecedented wave of IPOs from giants like OpenAI, Anthropic, and SpaceX are keeping major markets at record levels.

Goldman Sachs CEO David Solomon said that “enthusiasm could last for a long time,” but warned that greed could “quickly turn to fear.”

This is a complex trading situation for investors.

Another record high was reached on another day. The S&P 500 rose above 7,600 for the first time in history, closing at a new all-time high. Dow and Nasdaqwhich also reached a new peak. Japanese Nikkei Stock Average Stocks also rose to new levels on Wednesday, as major stock markets continued to ignore geopolitical concerns and focus on bullish sentiment around AI.

But there are also some warning signs. The last time the S&P rose this fast, outside of a recession, was before the 1987 crash. Deutsche Bank warned that “the speed of the economic rise overturns all recent precedent in economies that have not emerged from recession.”

he told CNBC on Tuesday. goldman sachs “We’re definitely in a time where there’s more greed than fear,” CEO David Solomon said, as the market anticipates a wave of funding for a number of large AI stock offerings.

This has spilled over into the crypto market, with Bitcoin falling to levels not seen since February, and some analysts saying alternative assets are losing out to private markets and IPOs as investors look for liquidity.

There is a sense of caution in the oil market. Brent and WTI are rising in early trade as negotiations between the US and Iran stall. US Central Command announced another defensive strike against Iran, while the White House said talks with the Iranian government continued despite state-backed Iranian news agencies reporting no messages had been exchanged for several days.

CNBC will have an exclusive chat with Israeli President Benjamin Netanyahu live from Israel later today at 10 a.m. ET. You can watch that interview here.

Trade tensions are reigniting after the Office of the U.S. Trade Representative proposed additional tariffs of up to 12.5% ​​on imports from 60 countries. USTR cited the failure to ban products made with forced labor as the reason for the action. Affected countries include the European Union, China, and Japan.

— Leonie Kidd

Audemars Piguet watch prices remain stable after controversial collaboration with Swatch

When famous luxury watch brand Audemars Piguet announced a collaboration with Swatch last month, some Audemars collectors feared the worst.

Rapper DDG said he would sell his $180,000 Audemars Piguet if the collaboration becomes too big and the brand becomes cheap. Members of the self-proclaimed horology community have warned that one of the “holy trinity” of watch brands known for their innovative complications, features and design has been made of plastic.

However, even weeks after the release of the AP-Swatch Royal Pop collection, AP prices on the secondary market have remained stable. Despite the predicted collapse of Audemars Piguet’s brand value and exclusivity, experts say AP is still AP.

— Robert Frank