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Good morning. We’re minutes away from the release of February’s personal consumption expenditures price index. Watch CNBC live for the numbers and analysis.
Stock futures are lower this morning. All three major averages posted major gains yesterday.
Here are five key things investors need to know to start the trading day:
1. Murky waters
US President Donald Trump during a prime-time address to the nation in the Cross Hall of the White House in Washington, DC, US, on Wednesday, April 1, 2026.
Alex Brandon | Getty Images
The Dow Jones Industrial Average recorded its best day in a year yesterday, closing more than 1,300 points higher, even despite Iran’s accusation that the U.S. breached the countries’ ceasefire agreement.
Here’s what to know:
In a statement posted on social media, Iran’s parliamentary speaker said Israeli attacks on Lebanon, a drone’s entry into Iranian airspace and the denial of Iran’s right to enrich uranium all amounted to violations of the ceasefire deal.Iran state media, meanwhile, reported that oil tanker traffic through the Strait of Hormuz — the opening of which was a key condition of the ceasefire agreement — was halted following Israel’s strikes in Lebanon. White House Press Secretary Karoline Leavitt denied those reports: “We have seen an uptick of traffic in the strait today,” she told reporters Wednesday. U.S. oil prices are back higher this morning after seeing their biggest one-day drop since 2020 yesterday. Brent crude futures are also on the rise as the ceasefire hangs in the balance.Follow live market updates here.
2. DenAIed
The Anthropic logo appears on a smartphone screen in this photo illustration, as the AI firm files lawsuits against the United States Department of Defense after the Pentagon moves to blacklist the company following disagreements over safeguards limiting the use of its AI systems for surveillance and autonomous weapons.
Jonathan Raa | Nurphoto | Getty Images
Anthropic yesterday lost its bid to temporarily block its blacklisting by the Department of Defense. A federal appeals court in Washington, D.C. sided with the Pentagon, denying Anthropic reprieve while its lawsuit against the DOD plays out.
The artificial intelligence startup sued the Pentagon last month after the department labeled Anthropic a “supply chain risk” following disagreements about how the DOD could use its AI technology.
Wednesday’s ruling comes after a federal judge in San Francisco sided with Anthropic in a separate, but related, case last month. That judge granted the company a preliminary injunction that blocks the government from enforcing a ban of Anthropic’s Claude.
3. Making the cut
Federal Reserve Chair Jerome Powell participates in a board meeting at the Federal Reserve on March 19, 2026 in Washington, DC.
Kevin Dietsch | Getty Images
Minutes from the Federal Reserve’s March meeting released yesterday showed central bank officials still expected to cut interest rates this year, despite widespread uncertainty from the Iran war and Trump’s tariff policy.
“Many participants judged that, in time, it would likely become appropriate to lower the target range for the federal funds rate if inflation were to decline in line with their expectations,” the minutes said. One cut in 2026 remained the consensus expectation.
Traders are also increasingly predicting one rate cut this year, following the U.S.-Iran ceasefire agreement. Market-implied odds of a cut this year rose to 43% after Trump’s Tuesday night announcement, up from just 14%.
4. $14 million later
Meta Chief AI Officer Alexandr Wang looks on during the AI Impact Summit in New Delhi on Feb. 19, 2026.
Ludovic Marin | AFP | Getty Images
Nine months ago, Meta invested $14.3 billion in Scale AI, bringing on board its CEO Alexandr Wang in an effort to overhaul its own AI business. Now, it’s got something to show for it.
The tech giant debuted its first major AI model yesterday — the first model out of the AI unit led by Wang. There’s a lot on the line for the new model, dubbed Muse Spark. Meta had a hard time cracking the artificial intelligence market: Its most recent family of AI models saw a disappointing debut, all the while OpenAI, Anthropic and Google continue to dominate.
As CNBC’s Jonathan Vanian notes, Muse Spark is also proprietary, a significant shift in Meta’s strategy as the company looks for a new AI revenue stream.
5. Time for a shopping spree?
People walk past a Lululemon department store in New York City on June 5, 2024.
Michael M. Santiago | Getty Images
With key barriers like high costs and injection-only options increasingly in the rear view mirror, usage of GLP-1 weight loss and diabetes drugs looks set to grow. That could be an opportunity for retailers, analysts say.
CNBC’s Melissa Repko reports that researchers are predicting an increased demand for clothing as shoppers refresh their closets after losing weight. According to one estimate, GLP-1 users could bring about as much as $13 billion in additional spending on clothes each year.
A GLP-1-fueled shopping spree could be a boon for certain retailers, in particular. Shoppers may look for value at big-box stores such as Walmart and Target as they drop several sizes, while athletic brands could see a boost as GLP-1 users become more active.
The Daily Dividend
In 13 U.S. housing markets, seven-figure houses are the norm. Here are the “pure luxury” markets, according to Realtor.com, where at least half of active listings top $1 million, with fewer than 500 such listings:
— CNBC’s Sean Conlon, Lisa Kailai Han, Sarah Min, John Melloy, Lee Ying Shan, Sam Meredith, Spencer Kimball, Kevin Breuninger, Brian Sullivan, Pippa Stevens, Ashley Capoot, Jeff Cox, Jonathan Vanian, Melissa Repko and Hayley Cuccinello contributed to this report. Melodie Warner edited this edition.
