A view of wrecked buildings in an area affected by U.S. airstrikes during a military operation involving both the U.S. and Israel in Tehran, Iran, on July 21, 2026, amidst heightened tensions between Iran and the U.S. in southern Iran.
Hello, I’m Hui Jie from Singapore. Thanks for tuning in to another edition of CNBC’s Daily Open.
Over the weekend, fighting in the Middle East took a pause, leading to a more peaceful atmosphere than we’ve seen recently.
However, the situation remains precarious. While the Trump administration grapples with tariff litigation domestically, Ukraine has aggressively targeted Iranian commercial ships.
Nvidia is on a fast track to secure additional memory supplies from SK Hynix, potentially up to $500 billion, which could give a significant boost to its stock after a recent downturn.
Interestingly, one European journalist posed what may be among the most pressing questions of our time: “Why is chocolate so expensive?”
What you need to know today
The weekend was relatively quiet for investors regarding the Middle East. A halt in the Iran war has contributed to lower oil prices, lifted stock values, and offered some relief to investors who’ve been anxious about renewed conflicts between Tehran and the U.S.
Yet, this calm is not without its complications. Ukraine has reportedly struck an Iranian merchant ship in the Caspian Sea, with President Volodymyr Zelenskiy admitting involvement in the attack, which is said to be related to military cargo transportation.
Iran has announced that one sailor has died and several others were injured as a result of the attack, accusing Ukraine of aggression.
In addition, the Trump administration is facing backlash from lawsuits filed by two companies over new Section 301 tariffs implemented last Friday regarding allegations of forced labor. Experts express doubts about the administration’s legal standing.
Meanwhile, across the Atlantic, Britain’s new Prime Minister, Andy Burnham, indicated a readiness to engage with President Trump if necessary, emphasizing that national interests must come first.
For investors, however, Nvidia’s deal in the AI sector stands out as potentially major news today. The agreement with SK Hynix for memory supplies could help alleviate market concerns amid a global shortage.
The attention isn’t solely on tech, either. The S&P 500’s industrial sector is trading at a price-to-earnings ratio above 30, a benchmark typically associated with high-growth firms.
Cynthia Murphy, director of research at VettaFi, noted, “Despite the technology’s advancement, this area is gaining significant traction.”
In Asia, eyes will be on China’s industrial profits for June, a critical indicator of the health of the second-largest economy in the world.
And finally…
Cocoa prices are declining. So, why is chocolate still so pricey?
Despite a retreat in cocoa prices from record highs, don’t expect chocolate to become cheaper right away. Major chocolate producers are turning to social media-driven products and other strategies to win back consumers.
In the past two years, cocoa prices surged due to adverse weather conditions and poor harvests, leading to increased chocolate prices and decreased consumer confidence.
Currently, cocoa futures are trading at $5,327 per tonne, which marks a 34% decline over the past year, although prices had soared to about $12,000 per tonne by the end of 2024. Historically, cocoa prices have stabilized around $2,000 to $3,000 for the last two decades.
