The stock of SpaceX continues its consolidation phase on the New York Stock Exchange one week after its Nasdaq listing.
Samuel Boivin | Nurphoto | Getty Images
Hello, this is Leonie Kidd writing to you from London. Welcome to today’s edition of the Daily Open newsletter.
Each time the tech sector takes another leg down, the same question is raised: Is this the start of a more serious correction, or is it a buying opportunity?
What you need to know today
Wall Street returned from a long weekend with a negative view on tech stocks.
The Nasdaq Composite led declines on Monday with a drop of 1.32% to end at 26,166.60.
Investors rotated out of the “Magnificent Seven” names, with Amazon dropping nearly 5% and Meta Platforms falling 2%. Alphabet shares slipped 5%, notching their worst daily performance in over a year, as brain drain concerns mounted following the departure of two high-profile AI researchers for rivals.
But the big loser of the day was SpaceX. The stock slumped 16% on Monday, marking three-straight days of losses. The average investor who bought SpaceX shares in the open market after its debut has seen nearly all of their gains disappear by the end of last week, thanks to the pullback.
Asia-Pacific markets are taking their cue from trading stateside, sending South Korea’s Kospi down over 8%, triggering circuit breakers, while Japan’s Nikkei is also lower.
For more on whether the tech sell-off marks the start of a longer pullback or a buying opportunity, check out CNBC Pro.
In geopolitical news, the U.S. Treasury has issued a 60-day license authorizing the production, delivery, and sale of oil from Iran.
When asked if he could guarantee that Iran would not use these profits to rebuild its military, President Donald Trump said, “we’ll see.”
“Well, they’re not supposed to be doing that, so we’ll see,” Trump told CNBC’s Eamon Javers at the White House during an executive order signing event when asked if he could ensure Iran would not use oil money for that purpose.
In the U.K., today marks the 10-year anniversary of the Brexit vote to leave the EU, held on June 23, 2016. It comes amid fresh political upheaval for Britain, after Prime Minister Keir Starmer’s resignation paved the way for rival frontrunner Andy Burnham to solidify his leadership bid.
For the four things investors should know about Andy Burnham, you can check out CNBC’s analysis here.
— Leonie Kidd
And finally…
How a $4 billion Indian startup won Meta’s backing but lost its founder to WhatsApp
Indian fintech startup Cred will raise $900 million in a funding round led by Mark Zuckerberg’s Meta— but has lost its founder and chief executive, Kunal Shah, to WhatsApp.
The startup, where Meta will soon become a minority investor, was valued at over $4 billion in its latest funding round, the Indian firm said in a press release on Monday. These funds will be used to “accelerate growth, build institutional muscle, and extend its leadership across categories,” it added.
— Priyanka Salve
