CNBC Daily Open: Big Tech rally drowns out Iran war fears — Buffett urges caution

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

Wall Street looked past geopolitical tensions with benchmark indexes rising on Big Tech strength and signs of easing inflation, even as Middle East hostilities escalated.

A $53 billion takeover bid for PayPal sent its stock soaring, while SpaceX learnt that what goes up fast will likely come down swiftly, as its stock fell below its IPO price.

Over in Washington, Fed Chairman Kevin Warsh spent his Senate testimony walking a tightrope — talking up the economy and interest rates while fielding questions about just how often he talks to the Trump administration.

The U.S. conducted several rounds of strikes on Iran on Wednesday, while President Donald Trump said the pressure was working, telling reporters that Iran now wants to meet.

Analysts warn the escalating hostilities risk a "forever war" — a conflict that grinds on without a clean exit — with energy markets likely seeing an extended disruption. Oil was trading higher during Asia hours.

Unperturbed by geopolitics, major averages on Wall Street closed higher, powered by Big Tech gains and buoyed by easing inflation. Wholesale prices unexpectedly fell 0.3% in June, driven by a big drop in gasoline — a welcome surprise that gives the Fed more room to maneuver.

Not everyone is celebrating the market rally though. Warren Buffett was critical of a stock market that he said is increasingly driven by speculative trading, as opposed to long-term investing. "It's tough to find values when everybody is preferring gambling."

The veteran investor told CNBC that he was the one who initiated the conglomerate's recent big investment in Alphabet, not Berkshire Hathaway's new CEO, Greg Abel.

Fed Chairman Kevin Warsh testified before the Senate banking committee, addressing questions on the economy and factors that impact interest rates. Warsh said he meets "often" with the Trump administration, while insisting the central bank's decisions remain independent.

On the tech front, Anthropic is moving closer to a mega-IPO of its own, with bankers lining up investor meetings for the AI company. A listing would put Anthropic ahead of rival OpenAI in reaching public markets and build on the momentum from SpaceX's blockbuster June IPO. The AI lab was last valued at $965 billion.

Stripe and Advent made a $53 billion takeover offer for PayPal, sending the payment giant's stock soaring. The companies made a $60.50 per share cash offer for the payments firm. PayPal hasn't responded to the offer.

And SpaceX stock sank below its $135 IPO price for the first time about a month after its blockbuster debut, as hype around the reusable rocket maker fizzled. The company is set to launch its 13th Starship test flight on Thursday.

— Anniek Bao

Kalshi traders see gas prices crossing $4 by end of July

Odds that gas prices will go above $4 per gallon by the end of this month have jumped to 90% from 56% on Kalshi in the last two days.

Kalshi traders now see a 93% chance that gas prices will go above $4 per gallon and 63% that it will go over $4.10. The contract, which asks what the gas price in the U.S. will be this month, will be verified by AAA. 

Wednesday's national gas price is at $3.89, about 3 cents higher than Tuesday's, according to AAA.

— Ananya Chetia