CNBC Daily Open: Iran's desire for a ceasefire lifts U.S. markets, but could be one-sided
The U.S. stock market rose amid news that Iran wants a ceasefire with Israel. As early as the first days of Israel's strikes, Tehran asked several countries to persuade U.S. President Donald Trump to call on Israel for an immediate ceasefire, NBC News reported, citing a Middle East diplomat with knowledge of the situation.
When asked at a news briefing Monday about the prospect of a ceasefire, however, Israeli Prime Minister Benjamin Netanyahu indicated he was not interested in one, according to NBC News. Netanyahu said Israel is "not backing down" from eliminating Iran's nuclear program.
Regardless of how negotiations — or the lack thereof — play out, it's clear that countries are placing renewed emphasis on defense. The U.S. Defense Department is turning to artificial intelligence to bolster its forces, announcing on Monday a one-year contract with OpenAI "to address critical national security challenges in both warfighting and enterprise domains."
Amid the Monday developments regarding armed conflict and defense considerations, the Trump Organization announced a mobile phone plan called Trump Mobile and a smartphone, clad in gold and emblazoned with an American flag, dubbed "T1." Putting aside iffy ethical issues about the sitting U.S. president lending his name to consumer products, their unveiling seemed ill-timed and tone deaf. Perhaps the reception over Trump Mobile was spotty.
Markets in America riseU.S. stocks rose Monday on news that Iran is reportedly seeking a ceasefire with Israel. The S&P 500 was up 0.94%, the Dow Jones Industrial Average climbed 0.75% and the Nasdaq Composite jumped 1.52%. Asia-Pacific markets were mixed in choppy trading Tuesday. Japan's Nikkei 225 rose 0.53% at 2:30 p.m. local time on developments regarding the country's monetary policy.
G7 leaders blame Iran for 'terror'"We reiterate our support for the security of Israel," Group of Seven leaders said in a joint statement Tuesday, as Tel Aviv trades military strikes with Tehran for the fourth consecutive day. The group condemned Iran for being the "principal source of regional instability and terror," reiterating that Iran can never have a nuclear weapon. Trump will be leaving the summit a day earlier because of the Middle East conflict, the White House said Monday.
BOJ to slow bond purchase cuts in 2026At its monetary policy meeting on Tuesday, the Bank of Japan reiterated it would continue reducing its monthly purchases of Japanese government bonds until March 2026, and subsequently slow down the cuts. The BOJ kept its benchmark rate unchanged at 0.5%, as expected by a Reuters poll of economists. In other Japan news, CNBC's Lim Hui Jie explores why the country, famous for its pacifist Constitution, is doubling down on arms exports.
OpenAI wins contract from Defense DepartmentOpenAI has been awarded a $200 million one-year contract to provide the U.S. Defense Department with artificial intelligence tools, the latter announced Monday. It's the first contract with OpenAI listed on the Department of Defense's website. In December, OpenAI said it would collaborate with defense technology startup Anduril to deploy advanced AI systems for "national security missions."
Trump Organization enters telecommunicationsThe Trump Organization, a company owned by the current U.S. President, on Monday announced a mobile phone plan and a $499 smartphone set to launch in September. The company's new foray into telecommunications mainly comprises a licensing agreement. On Friday, the president reported that he had made more than $8 million in 2024 from various licensing agreements.
[PRO] What would it take for markets to react?Equity and energy markets appeared to shake off concerns of a wider conflict in the Middle East on Monday, reversing some of the moves from late last week. Such a response to geopolitical conflict is not unusual, according to one strategist, who explained what it would take for markets to feel the effects of the hostilities.
Gold outshines Treasurys, yen and Swiss franc as the ultimate safe haven
Gold has claimed the safe haven crown. With spot prices surging 30% so far in 2025, bullion's gains are outpacing that of other traditional safe havens such as the Japanese yen, Swiss franc, and U.S. Treasurys — compelling investors to rethink what true safety looks like in the face of fiscal sustainability concerns and looming wars.
At the heart of gold's appeal is its freedom from government liabilities, market experts gathered at the annual Asia Pacific Precious Metals Conference told CNBC on Monday.
"Gold's key advantage is that it is no one else's liability," said Nikos Kavalis, managing director at Metals Focus. "When an investor owns Treasurys, other sovereign bonds and even currencies, they are ultimately buying into the respective economy," he said.
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