Key insights
- News of potential US-Iran negotiations provided a slight boost to stock futures. However, Meta was found liable for $375M in damages related to child safety on its platforms, which could negatively impact investor sentiment. OpenAI is shutting down Sora to cut expenses as it seeks additional funding, signaling a possible shift in strategy ahead of a potential IPO.
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Happy Wednesday. I spent yesterday evening at a market technicals event and then went to watch the "Hannah Montana 20th Anniversary Special." You might call it the best of both worlds.
Stock futures are up this morning after a losing day.
Here are five key things investors need to know to start the trading day:
President Donald Trump said yesterday that the U.S. and Iran are "in negotiations right now" and that Tehran is "talking sense," lifting investors' hopes that the conflict could be in its 11th hour.
Here's what to know:
A New Mexico jury held Meta liable for civil damages yesterday in a trial over whether the Facebook and Instagram parent failed to safeguard kids from child predators on its apps. The jury said Meta should pay $375 million in damages.
Jury members, who began deliberating Monday, found Meta violated New Mexico's unfair practices act. A Meta spokesperson said they "respectfully disagree with the verdict and will appeal."
Meanwhile, Anthropic went to court yesterday in hopes of winning an injunction to pause the Defense Department's ban of its products. U.S. District Judge Rita Lin said the Pentagon's decision "looks like an attempt to cripple" the artificial intelligence startup.
Sora was here for a good time, not a long time. OpenAI said it's shuttering its short-form video app, which hit one million downloads within five days of its viral debut six months ago.
As CNBC's Ashley Capoot notes, OpenAI is looking to cut expenses as it readies to potentially go public. The company said in a social media post that it would share a timeline and information to preserve work made on the platform soon.
In other OpenAI news, CFO Sarah Friar told CNBC's Jim Cramer last night that the AI startup is raising $10 billion in additional funding from investors. "What I'm really pleased about is we raised money all around the ecosystem," Friar said.
CNBC's Morning Squawk recaps the biggest stories investors should know before the stock market opens, every weekday morning.
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Senate Republicans and the White House appear to be close to having a deal that could end the partial government shutdown. The agreement would fund all of the Department of Homeland Security — with the exception of part of the Immigration and Customs Enforcement budget.
A White House official speaking on the condition of anonymity told CNBC yesterday that while talks are ongoing, the deal "seems to be acceptable." Democrats have not said whether they approve of the deal.
Meanwhile, Delta Air Lines said yesterday that it is suspending its airport escorts and red coat services for Congress members and their staff. The air carrier cited the partial shutdown, which has caused long airport lines as Transportation Security Administration agents work without pay.
Breaking pharma news this morning: Merck is buying Terns Pharmaceuticals for $6.7 billion.
The move marks the third multibillion-dollar acquisition for Merck in the last year. The New Jersey-based company is attempting to build out its portfolio before it loses patent protection on its well-known Keytruda drug in 2028.
Terns shares jumped more than 5% before the bell, while Merck's stock sat near flat.
Micron fell for a fourth straight day yesterday as investors fretted about the memory maker's ability to meet booming demand.
— CNBC's Kevin Breuninger, Hugh Son, Lee Ying Shan, Jonathan Vanian, Ashley Capoot, Morgan Chittum, Justin Papp, Leslie Josephs, Dan Mangan, Angelica Peebles, Elsa Ohlen and Lola Murti contributed to this report. Josephine Rozzelle edited this edition.