Key insights
- Reports of a potential US-Iran peace deal are boosting stock futures and pressuring oil prices. Strength in technology stocks and Disney's earnings beat are also contributing to positive market sentiment. However, conflicting statements from Trump introduce uncertainty. Overall, the news leans bullish for US equities, but the Iran situation requires close monitoring.
This is CNBC's Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.
Happy Wednesday. After reading about Restaurant Brands International's earnings this morning, I'm in the mood to get my morning coffee from Tim Hortons.
Stock futures are rising this morning after a winning day for the three major indexes.
Here are five key things investors need to know to start the trading day:
Stock futures are jumping and oil prices are falling after Axios reported this morning that the U.S. and Iran are nearing a deal to end the war. A spokesperson for Iran's Foreign Ministry told CNBC that it was "evaluating" a 14-point peace proposal from the U.S.
Following the report, President Donald Trump said in a Truth Social post this morning that Iran will be bombed "at a much higher level" if Tehran doesn't agree to a deal.
The potential peace agreement comes after Trump said yesterday that he would pause "Project Freedom," a U.S. military effort to guide commercial ships out of the Strait of Hormuz. Trump cited "Great Progress" toward a deal with Iran as reason to suspend the project, which began only a day earlier.
In addition to sliding oil prices, the market also got a boost from a crop of rallying technology stocks yesterday. The S&P 500 and Nasdaq Composite both recorded fresh intraday and closing records.
Here's what to know:
Strength in its streaming and parks units helped Disney beat second-quarter revenue expectations this morning. Shares of the company rose as much as 7% in premarket trading following the report, Disney's first since Josh D'Amaro took the helm in March.
Revenue in Disney's experiences business rose 7% year-over-year despite a 1% decline of domestic park visits, which the company said was due to fewer international visitors. But CFO Hugh Johnston told CNBC's Julia Boorstin that the company hasn't seen rising energy prices dampen the strength of the consumer, saying bookings for the second half of the year "are quite strong."
CNBC's Morning Squawk recaps the biggest stories investors should know before the stock market opens, every weekday morning.
Subscribe here to get access today.
Magnificent Seven darling Nvidia and glassmaker Corning announced this morning that they are partnering to build three new manufacturing facilities in North Carolina and Texas. The facilities will be dedicated entirely to developing optical technology for Nvidia.
Investors liked the news, with shares of Corning surging nearly 20% in premarket trading. Shares of Nvidia are also higher following the announcement.
The two companies didn't detail specifics about what's being developed, but CNBC's Katie Tarasov reports that the chipmaker is likely preparing to replace copper in its AI rack-scale systems with Corning's optical glass fibers. Nvidia CEO Jensen Huang last year emphasized the importance of such integration, what's called co-packaged optics, in the artificial intelligence buildout.
Spirit's closure sent shockwaves through the travel industry over the weekend. As CNBC's Leslie Josephs reports, the airline is now kicking off a monthslong dismantling process.
The iconic budget airline and its stakeholders went to bankruptcy court in White Plains, New York, yesterday for a hearing that covered airport landing fees, aircrafts and staffing. Spirit has had a wind-down budget of around $217 million, but that number could change.
Marshall Huebner, a lawyer for Spirit, said at Tuesday's hearing that the airline was forced to shut down amid the spike in jet fuel prices from the Iran war.
Sen. Tim Scott, R-S.C., said at a conference yesterday that Federal Reserve Chair Jerome Powell should leave the central bank's Board of Governors when his chairmanship concludes, calling Powell's recently announced decision to stay on a "significant mistake."
— CNBC's Sean Conlon, Sam Meredith, Lee Ying Shan, Chloe Taylor, Lola Murti, Tobias Burns, Katie Tarasov, Jordan Novet, Kevin Breuninger, Leslie Josephs, Justin Papp and Lillian Rizzo contributed to this report.
Josephine Rozzelle edited this edition.
Correction: President Donald Trump said in a Truth Social post Wednesday that Iran would be bombed "at a much higher level and intensity than it was before" if it did not agree to a deal. A previous version misquoted his post.