Wall Street Dips as Tech Stocks Tumble; UK Prepares for New PM

Hello, this is Gail Krishnan writing to you from Singapore. Welcome to today's edition of CNBC's Daily Open.

On Wall Street, a rotation out of big tech dragged the S&P and Nasdaq lower. That offset more encouraging newsflow on Iran as the U.S. agreed to waive Iranian oil sanctions for 60 days.

Meanwhile, 10 Downing Street will soon get a new occupant, for the seventh time in 10 years.

Japan has long held the dubious honor of a revolving door of prime ministers. But on the 10th anniversary of Brexit, Britain is finding itself in increasingly familiar territory.

Oil prices slid further below $80 after the U.S. waived Iranian oil sanctions for 60 days following the first day of talks, a move that could bring more Iranian crude back onto global markets and ease supply worries.

Iranian President Masoud Pezeshkian is due in Pakistan today for further talks. U.S. Vice President JD Vance on Monday hailed "great progress" in negotiations, saying Tehran had agreed to allow International Atomic Energy Agency inspectors to return and monitor its nuclear activities.

Despite that progress, the S&P 500 and Nasdaq declined, as megacap tech names tumbled. Alphabet, Amazon, Meta and Microsoft saw losses between 2% and 5% on a mix of AI concerns and higher yields, which tend not to bode well for growth stocks.

SpaceX continued its sharp descent back to Earth. Shares slumped 16% for a third straight session of losses, wiping out $400 billion in market cap on Monday alone. Barely weeks after its IPO, the company disclosed a cash position of $100.8 billion and announced plans to raise fresh capital through an unsecured notes offering. According to CNBC sources, the bond raise could total as much as $20 billion and kick off as soon as Tuesday.

Wall Street also paid tribute to Alan Greenspan. The "Maestro" who served as Fed chair from 1987 to 2006 died at age 100. He was one of the longest-serving Fed chairpersons and a monumental figure in the world of economics. Greenspan famously warned of "irrational exuberance" in 1996, four years before the dot-com bubble burst. Markets and economies alike move in cycles. Three decades later, investors are asking a familiar question about the AI exuberance.

Across the Atlantic, the U.K. is discovering what Japan has long known: prime ministers can be a fast-moving asset class, as Keir Starmer became the latest British prime minister to resign.

On the 10th anniversary of the Brexit referendum, Britain is preparing for its seventh prime minister in a decade. At this point, Larry the cat, the Downing Street chief mouser, may be one of the country's few remaining sources of political continuity.

Starmer's resignation paves the way for Andy Burnham, who was sworn in as an MP on Monday, to become PM by mid-July if no leadership contest materializes. Nominations to replace Starmer will open on July 9 and close by July 16.

Former health minister Wes Streeting, viewed as a potential challenger, has instead backed Burnham's bid, easing some concern about a protracted and divisive leadership battle.

Pound sterling and U.K. bonds, known as gilts , have been steady on anticipation of the news. Investors will now be closely watching for clues on Burnham's policy direction, which so far has been scant on details. Key to watch for will be how a new government intends to tackle Britain's debt burden and revive sluggish growth without driving borrowing costs even higher.

Meanwhile, the World Economic Forum's Annual Meeting of the New Champions, better known as the Summer Davos, kicks off in Dalian, China, under the theme 'Innovating at Scale." Discussions are expected to focus on shifting trade patterns, rapid technological advances and their practical applications.

— Gail Krishnan