CNBC Daily Open: Mixed messaging on Iran-U.S. possible deal — but markets are cheering

Hello, this is Justina Lee writing to you from Singapore. Welcome to another edition of CNBC's Daily Open.

Traders continue to keep an eye on the Strait of Hormuz, amid optimism that Washington and Tehran could reach a deal to open the critical energy waterway.

U.S. tech corporates' forecasts, particularly capex guidance, are in focus with earnings underway, after SpaceX and Advanced Micro Devices posted a sharp rise in spending, even as earnings exceeded expectations.

All eyes are on the Strait of Hormuz after U.S. Treasury Secretary Scott Bessent told CNBC that Washington and Tehran could reach a deal to open the Strait of Hormuz by Wednesday.

"It would be freedom of movement," Bessent said when asked whether Iran would be allowed to charge a toll. About 20% of the world's oil flowed through the Hormuz Strait before the war.

According to the U.S. Central Command's X post, the southern route through the waterway remains free and open for all commercial vessels seeking to transit the international waterway."

However, tensions continue to simmer between the U.S. and Iran, amid a report that Iran claimed President Donald Trump could "ignite the spark of World War 3," after Washington cautioned Tehran that it was its "last chance" to make a deal.

U.S. stocks surged overnight, while Asian markets were also higher Wednesday.

With the earnings season underway, investors scouring through financial results looking for clues to companies' growth outlook.

While SpaceX reported better-than-expected revenue for the second quarter in its first earnings report since its record IPO in June, concerns over growing capital expenditures weighed on its its stock, which fell about 7% in extended trading.

Advanced Micro Devices posted second-quarter earnings that beat expectations, but said it spent $808 million on capital expenditure. That is a steep rise from $282 million in the year-ago period and $389 million in the March quarter. Its stock fell in extended trading after rising during regular trading hours.

Meanwhile, Paramount Skydance raised its full-year profit guidance, after exceeding Wall Street expectations for revenue and reported gains in its streaming unit.

—Justina Lee

Europe’s heatwave isn’t cooling Asian travelers’ holiday plans for the continent

As Europe endures another summer of record-breaking heat, Asian travelers continue to flock to the continent, with little sign that soaring temperatures are dampening demand.

The trend also reflects a broader diversification in Asian travel spending across Europe, as travelers spread their budgets across a wider range of destinations throughout the continent. 

Searches for European destinations by Asian travelers rose 57% year on year during the July-August travel season, with improved conversion rates from search to booking, said Edmund Ong, senior regional director, Southeast Asia at Trip.com

—Jenny Lee