A trader works on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York on April 16, 2026.
Timothy A. Clary | Afp | Getty Images
Hello, this is Hui Jie writing to you from Singapore. Welcome to another edition of CNBC’s Daily Open.
From stagflation warnings and stalled Iran talks to rising oil prices, red flags are everywhere.
But investors continue to push markets in the U.S. (and some in Asia) to new highs — is that misplaced optimism or the AI-driven tech gains are going to sustain this rally amid geopolitical worries?
What you need to know today
Warning signs are flashing for the Trump administration like red lights on a stalled F1 driver’s car.
There’s geopolitical strain from stalled Iran peace talks, growing worries of an extended Mideast conflict, and billionaire investor Ray Dalio has warned the U.S. economy was in a “stagflationary period.”
That’s the kind of scenario that usually spooks investors as it usually means that central banks cannot cut or raise rates to combat inflation or stimulate growth.
But not this time around. The S&P 500 and the Nasdaq Composite rose to fresh highs overnight, clearly underlining that investors are looking past the warning signs. While Asia markets opened mixed Tuesday, South Korea’s Kospi briefly touched a new record high.
Dalio also said that it would be a mistake for the potential Federal Reserve chair successor Kevin Warsh to lower interest rates, a key demand of U.S. President Donald Trump.
Oil prices continued to rise as Iran-U.S. peace talks stalled, further stoking energy supply worries, with global Brent futures advancing 2.75% to close at $108.23 a barrel and West Texas Intermediate futures up 0.39% to trade at $96.77 per barrel. They were trading higher during early Asia hours Tuesday.
Iran has reportedly offered a new proposal to the U.S. for reopening the Strait of Hormuz and ending the war while suggesting that nuclear talks be deferred. White House press secretary Karoline Leavitt confirmed Monday that Trump and his national security team discussed Iran’s proposal.
Meanwhile, just weeks ahead planned talks between Trump and Chinese President Xi Jinping, Beijing has moved to block Meta’s $2 billion acquisition of Manus, a Singaporean artificial intelligence startup with Chinese roots. The acquisition was completed last December and Meta said in March “the transaction complied fully with applicable law.”
Looking ahead, Asian investors will be watching the Hong Kong market debut of Chinese optical-computing provider Lightelligence, after it raised 2.5 billion Hong Kong dollars ($323 million) in its IPO.
— Lim Hui Jie
