Oil soars amid Middle-East tensions

This report is from today’s CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

Wall Street little changed
The S&P 500 and the Nasdaq Composite largely held on to gains in choppy trade ahead of key inflation data. The S&P 500 closed virtually unchanged, up 0.23 points, while the Nasdaq Composite added 0.21%, boosted by a surge in Nvidia shares. However, the Dow Jones Industrial Average fell 0.36%. The yield on the 10-year Treasury edged lower. 

Mid-East tensions
U.S. crude oil prices rose over 4% on Monday, surpassing $80 per barrel, as the Pentagon deployed additional forces to the Middle East in response to heightened tensions. Defense Secretary Lloyd Austin ordered a carrier strike group, including F-35 warplanes, and a guided-missile submarine to the region. Israel has been preparing for retaliatory strikes by Iran and Hezbollah after the assassination of a Hamas leader in Tehran. 

Elliott-Starbucks settlement?
Activist investor Elliott Management and Starbucks are in settlement talks, with potential terms including a board seat for Elliott’s Jesse Cohn and governance improvements, according to CNBC’s David Faber. CNBC previously reported the talks held last week would allow CEO Laxman Narasimhan to keep his job and position on the board. Starbucks Chairman Emeritus Howard Schultz has been opposed to the settlement. Elliott has built  a $2 billion stake in Starbucks.

Trump interview disrupted  
Elon Musk’s interview with former President Donald Trump on the X platform faced significant technical issues, with users unable to join the livestream initially. Musk blamed a cyberattack for the disruptions, although CNBC couldn’t verify this. After nearly an hour of troubleshooting, the interview finally began and lasted over two hours, with up to 1.3 million viewers at peak. Musk claimed the attack was aimed at silencing Trump.

Japanese stocks rise
Japan’s benchmark indexes rose sharply on Tuesday amid mixed Asia-Pacific markets, while the yen weakened. Nikkei climbed as much as 3% as markets resumed trading after a holiday. Singapore’s Straits Times rose 0.85% as its economy grew 2.9% in the second quarter. Elsewhere, South Korea’s Kospi slipped marginally, while Australia’s S&P/ASX 200 climbed 0.12%. Hong Kong’s Hang Seng index gained 0.10%, while mainland China’s CSI 300 slid 0.21%.

[PRO] Two-month struggle
Investors may face a tough two months as Wall Street’s fear gauge recently spiked to its highest level since the pandemic. Bank of America notes the S&P 500 typically falls after such volatility spikes since the pandemic. Bank of America notes the S&P 500 typically falls after such volatility spikes.

Nvidia gave Wall Street…