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Hello, this is Hui Jie writing to you from Singapore. Welcome to another edition of CNBC's Daily Open.
Iran has returned to the headlines after U.S. President Donald Trump issued a fresh warning to Tehran — this time with a picture straight out of a James Bond film — while the Federal Reserve delivered its most divided decision in decades.
Elsewhere, tech companies take the earnings spotlight, with Microsoft and Alphabet announcing massive capital spending, while Samsung Electronics reported record-breaking results.
What you need to know today
"Speak softly and carry a big stick," former U.S. President Theodore Roosevelt famously said.
The current occupant of the White House, however, seems to prefer a different approach, as evidenced on Truth Social.
Trump on Wednesday reiterated his threat to Iran, saying the U.S. would maintain its naval blockade until Tehran agrees to a nuclear deal — a message delivered with characteristic flair on social media.
The rhetoric rattled an already edgy oil market, sending the price of Brent crude up 6% to top $118 per barrel. U.S. West Texas Intermediate futures also climbed 1.05% to $108.
Markets dipped amid the uncertainty. The Dow Jones Industrial Average notched its fifth straight day of losses.
At the same time, the Federal Reserve delivered its most divided decision since 1992 as it held rates steady at 3.5%-3.75%, in an 8-4 split.
While this may be Jerome Powell's last Fed meeting as chair, he has vowed to stay on the board of governors, citing ongoing legal actions taken against him.
Away from politics, earnings season provided a more upbeat narrative.
Alphabet beat expectations with 20% revenue growth and raised its capital expenditure outlook to as much as $190 billion for 2026, with more to come in 2027. Microsoft also topped forecasts, though it warned of soaring memory costs as spending climbs toward levels similar to those of Alphabet.
In Asia, Samsung Electronics posted an over eightfold increase in first-quarter operating profits, hitting a new record and surpassing analysts' estimates.
To paraphrase Roosevelt: Big Tech may not be speaking softly, but it is definitely carrying a very big wallet.
— Lim Hui Jie
And finally...
Anthropic in talks with investors to raise funds at $900 billion valuation, higher than OpenAI
Anthropic has been chasing OpenAI since the launch of ChatGPT in late 2022. It appears to have finally caught up.
The artificial intelligence startup, founded five years ago by former OpenAI execs, is in talks with investors to raise money at a $900 billion valuation, according to a person familiar with the matter.
OpenAI was valued at $852 billion in late March after closing a record-breaking $122 billion funding round. Large contributions came from strategic investors, including up to $50 billion from Amazon, $30 billion from Nvidia and $30 billion from SoftBank.
— Kate Rooney, Ashley Capoot
