5 Things to Know Before Tuesday’s Market Open

In a swift conclusion that surprised many observers, a jury has ruled that Elon Musk’s legal challenge against OpenAI, alleging a breach of its founding charter regarding for-profit conversion, falls outside the applicable three-year statute of limitations. This advisory verdict, rendered after less than two hours of deliberation, effectively ends the three-week trial and the prolonged dispute that has captivated the technology sector.

Musk has indicated his intention to appeal the decision, characterizing the ruling as based on a “calendar technicality.” His legal team, having reserved the right to appeal, faced immediate acknowledgment from U.S. District Judge Yvonne Gonzalez Rogers, who expressed readiness to dismiss the case on those grounds.

Representatives for OpenAI and Microsoft, also a defendant in Musk’s suit, appeared to celebrate the outcome as they departed the Oakland courthouse. This legal battle underscores the intense scrutiny surrounding the governance and commercial trajectory of leading AI development firms, particularly given the foundational principles they espoused.

The fallout from this legal chapter contrasts sharply with the early collaborative spirit between Musk and OpenAI CEO Sam Altman. Their journey from close allies to adversarial figures is a narrative that highlights the volatile dynamics within the rapidly evolving AI landscape.

As this case concludes, the tech world’s attention pivots to another significant legal proceeding: the oral arguments in Anthropic’s lawsuit against the Justice Department concerning its blacklist status. This development signals a broader trend of legal challenges emerging at the intersection of AI innovation and regulatory oversight.

Home Depot has reported robust first-quarter earnings, surpassing analyst expectations on both the top and bottom lines. The retail giant also maintained its full-year guidance, signaling resilience in its core homeowner customer segment despite macroeconomic pressures such as rising gas prices, declining consumer confidence, and a strained housing market.

During a CNBC interview, CFO Richard McPhail attributed this strength to the financial stability of the homeowner demographic. “The homeowner, in a relevant sense, is perhaps more protected financially than other customer cohorts, and so we continue to see engagement,” McPhail stated, emphasizing their targeted customer base’s capacity to continue spending on home improvement projects.

This strong performance from Home Depot sets the stage for a critical week for retail sector earnings. Competitors Lowe’s, along with major players Target and Walmart, are all scheduled to release their quarterly results in the coming days. Wall Street has been cautiously observing the retail landscape, with heightened concerns regarding the impact of surging energy costs on consumer spending power.

President Donald Trump is set to appoint Kevin Warsh as the next chairman of the Federal Reserve this Friday, according to a White House official. Warsh will assume the role as the 11th chair of the central bank and will be the wealthiest individual to hold the position.

Under new regulatory frameworks for Federal Reserve officials, Warsh will be required to divest a significant portion of his investment portfolio. While President Trump has expressed expectations for a Fed under Warsh’s leadership to lower interest rates, financial analyst Ed Yardeni of Yardeni Research suggests that Warsh might face pressure to implement rate hikes at the Federal Reserve’s July meeting to appease bond market investors, often referred to as “Bond Vigilantes.” This potential divergence highlights the complex balancing act the Fed faces in managing inflation and economic growth.

President Trump has dismissed his $10 billion lawsuit against the Internal Revenue Service (IRS). In a significant development, the Department of Justice has agreed to establish a $1.8 billion fund to resolve claims from individuals who assert they have been victims of “lawfare,” a term referring to the strategic use of legal processes for political or personal gain.

The newly created “Anti-Weaponization Fund” will be financed through the Justice Department’s judgment fund, enabling the department to settle and disburse payments for these cases. The department has indicated that it will cease processing claims for this fund no later than December 2028.

A spokesperson for Trump’s legal team stated that the settlement, which originated from a lawsuit filed in January concerning the leak of the president’s tax information by an IRS employee, was pursued “squarely for the benefit of the American people.” However, the agreement has drawn criticism from Democrats, with Senator Elizabeth Warren labeling it as “corruption on steroids,” underscoring the partisan divide on the use of governmental authority and legal recourse.

The rapid advancement of artificial intelligence is presenting a significant challenge to the traditional college-to-career pipeline. However, as reported, companies are increasingly turning to skilled trades, creating new pathways to economic opportunity and upward mobility. This surge in demand for vocational expertise reflects a strategic adaptation by the labor market to the evolving technological landscape, emphasizing the enduring value of hands-on skills in a digitally driven world.

—CNBC contributed to this report.