CNBC Daily Open: Markets look past soaring U.S. budget deficit

U.S. Federal Reserve in Washington, DC, on January 30, 2024.Mandel Ngan | Afp | Getty ImagesHello, this is Justina Lee writing to you from Singapore. Welcome to another edition of CNBC's Daily Open.Traders continue to watch for clues for potential interest rate hikes after the U.S. budget deficit has surged to its highest monthly level in more than five years.From deficit to investments: "Made in U.S.A" continues to be in focus in the American auto sector, with Ford Motor saying it will increase production of its Lincoln vehicles in the country beginning in 2030.Over in the tech space, the AI race between the U.S. and China continues to intensify following the release of open-weight AI models by Meta and Nvidia. What you need to know todayThe U.S. budget deficit surged to its highest monthly level in more than five years, raising concerns over the country's fiscal health, weighed down by interest on the federal debt. The July shortfall of $432.3 billion was the largest monthly deficit since March 2021. While expectations for a Fed hike were tempered by a soft payroll reports and benign inflation data, traders aren't pricing in any chance of a rate cut for the next five years.Moving...