CNBC Daily Open: U.S. markets rise on tech rebound, while 'Takaichi trade' lifts Japanese stocks

• The Nasdaq jumped 0.9% and S&P 500 rose 0.47% Monday, with major tech stocks leading gains, while the Dow reached another record close with a 0.04% increase
• Alphabet warned of potential 'excess capacity' in data centers but is planning to raise funds through a U.S. dollar bond sale that includes a 100-year sterling-denominated bond
• Taiwan's Vice Premier called it 'impossible' to relocate 40% of chip supply chain to the U.S., pushing back against plans outlined by U.S. Commerce Secretary Howard Lutnick

Market Summary: U.S. Tech Rebound and Japanese Market Surge

Key Market Movements

U.S. markets closed higher Monday with the S&P 500 up 0.47%, the Nasdaq gaining 0.9%, and the Dow adding 0.04% to reach another record close. Asian markets followed suit Tuesday, with Japan's Nikkei 225 surging over 2%, driven by the "Takaichi trade" as investors anticipate favorable economic policies from Prime Minister Sanae Takaichi.

Tech Sector Developments

Big Tech led gains, with one stock jumping 9.6% and another advancing 3.1%. However, concerns persist about heavy capital expenditures and excess capacity. Alphabet warned in recent filings about potential "excess data center capacity" in adverse scenarios, yet still plans to raise funds through a U.S. dollar bond sale, including a 100-year sterling-denominated bond.

Positively, ChatGPT CEO Sam Altman reported the platform is "back to exceeding 10% monthly growth," suggesting sustained industry expansion.

Geopolitical and Trade Issues

Taiwan-U.S. Relations: Taiwan's Vice Premier Cheng Li-chiun stated it's "impossible" to relocate 40% of the chip supply chain from Taiwan to the U.S., pushing back against plans outlined by U.S. Commerce Secretary Howard Lutnick.

China-UK Tensions: China criticized the UK's expanded visa scheme for Hong Kong residents, calling it "despicable," following the sentencing of pro-democracy media tycoon Jimmy Lai.

Maritime Security: The U.S. Maritime Administration urged ships to avoid Iranian waters following recent incidents involving forced vessel redirections.

Other Developments

Oil prices dipped slightly despite EU plans to sanction Indonesian and Georgian ports over Russian oil handling. Commodity trading advisors are capitalizing on volatility in precious metals markets as gold and silver prices fluctuate.