CNBC Daily Open: India and U.S. strike a trade deal, and markets shrug off precious metals rout

• Elon Musk announced SpaceX is acquiring xAI, with the combined company preparing for an IPO valued at $1.25 trillion according to Bloomberg
• Bitcoin fell below $80,000 over the weekend for the first time since April 2025, down about 12% over seven days due partly to forced liquidations
• Spot gold and silver extended losses on Monday, while bitcoin proxy MicroStrategy dropped 6.7% amid the precious metals rout

Market Summary: U.S.-India Trade Deal and Market Resilience

Key Developments

U.S.-India Trade Agreement: President Trump announced the U.S. will lower reciprocal tariffs on India. In exchange, India committed to increase American purchases and cease Russian oil imports, pivoting to U.S. and potentially Venezuelan oil instead.

Major M&A Activity: Elon Musk announced SpaceX is acquiring startup xAI, with the combined entity preparing for a massive IPO valued at $1.25 trillion, according to Bloomberg.

Market Performance

U.S. equities climbed Monday despite precious metals turmoil:

• S&P 500: +0.54%
• Dow Jones: +1.05%
• Nasdaq: +0.56%
• European Stoxx 600: +1.03%

Precious metals extended losses, with spot gold and silver continuing their rout.

Cryptocurrency Under Pressure

Bitcoin fell approximately 12% over seven days, dropping below $80,000 for the first time since April 2025. Forced liquidations contributed to the decline. Bitcoin proxy MicroStrategy (MSTR) fell 6.7%.

Corporate Highlights

• Oracle: Credit default swaps plummeted after announcing significant debt and equity raises, boosting investor confidence
• Nvidia: Declined 2.9% on reports of a planned investment in OpenAI
• Disney: Reported "softer" international attendance at U.S. theme parks during Q1, facing headwinds from reduced travel
• Tesla: Converting California plant to robotics production

Morgan Stanley identified firms positioned to benefit from robotics industry growth, as Chinese rivals accelerate humanoid robot production.

RBA Watch: Australia's central bank expected to buck the global easing trend with a rate hike.