Meta Platforms is leading an AI-driven market rally, with its new Muse AI agent driving Nasdaq to record highs and boosting the ‘Magnificent Seven’ stocks. Meanwhile, oil prices rebound as global leaders prepare for key meetings at the UN General Assembly and a highly anticipated U.S.-China summit, where AI and trade will be central discussion points, while soccer star Kylian Mbappé makes a high-profile move from Nike to On.
Hello from London! This edition of CNBC's Daily Open brings you the latest on a surging AI market and high-stakes international diplomacy.
A new AI sensation has emerged in Meta's Muse. Mark Zuckerberg's tech giant has leapfrogged competitors in the AI sphere with a groundbreaking model, witnessing an unprecedented surge in download popularity. This breakthrough has propelled the 'Magnificent Seven' stocks and the Nasdaq to fresh record highs.
However, with AI remaining a significant point of contention for global leaders convening stateside this week, questions arise: will these market gains endure?
What you need to know today
The Nasdaq Composite achieved a new record high on Monday, largely fueled by a stellar performance from Meta shares, which recorded their best day in over a year. The excitement surrounding Meta stems from the highly successful launch of its new AI model, Muse. By Friday, Meta's Muse agent had surpassed ChatGPT to become the leading free iOS app, boasting over 730,000 downloads within just five days. Trading volumes for Meta stock soared, with shares climbing more than 20% since the details of the AI assistant were unveiled. This momentum also uplifted the broader Magnificent Seven group of stocks, with the Roundhill Magnificent Seven ETF reaching a record level for the second consecutive session.
Brent is back
Oil prices are on the rise in early Tuesday trading, recovering after international benchmark Brent crude futures briefly dipped below the $100 a barrel threshold. This rebound coincides with the commencement of the UN General Assembly in New York. President Donald Trump is scheduled to hold sideline meetings with Gulf leaders, and Iran's President Masoud Pezeshkian is expected to address the assembly. President Trump also has bilateral meetings planned with U.K. Prime Minister Andy Burnham and Ukrainian President Volodymyr Zelenskyy.
Dinner date
Preparations are underway for the much-anticipated state dinner between President Trump and Chinese President Xi Jinping. The U.S. has confirmed that several American tech and banking CEOs will attend, though Beijing has yet to disclose its list of participating Chinese companies. While a trade truce between the two economic giants appears to be holding, topics such as AI and Iran could become flashpoints for the leaders during their meeting in Washington D.C.
Weighing up the competition
In corporate news, shares of Novo Nordisk are poised to open after a volatile session on Monday. The Danish drug-maker's stock experienced a dip at the start of the week as investors expressed skepticism regarding its growth strategy and the escalating competition in the weight-loss drug market. For more insights, catch the CEO's interview on Squawk Box Europe.
And Finally...
Soccer superstar Kylian Mbappé on ending 20-year journey with Nike: ‘It was time to change’
French soccer icon Kylian Mbappé recently shared with CNBC his decision to seek 'change' after nearly two decades with Nike. Mbappé has now inked a deal with Swiss sportswear brand On. On, a relatively new entrant in the soccer market, announced Friday that it will collaborate with Mbappé to develop high-performance footwear and apparel. Having been associated with Nike since his childhood, the French player opted not to renew his long-standing agreement with the sportswear giant. "Of course, I had 20 amazing years with Nike, I can only say thanks to them," Mbappé remarked in a joint interview with On's co-CEO David Alleman on CNBC's Carolin Roth.
