5 Key Things to Know Before Wednesday’s Market Open

The S&P 500 continued its impressive run, securing an all-time closing high for a sixth consecutive session and decisively breaking above the 7,600 mark for the first time. This upward momentum was mirrored by the Dow Jones Industrial Average, which also concluded yesterday’s trading at record levels, marking its fifth straight day of gains – a feat not achieved this year until now. This broad market strength underscores a prevailing optimism, likely fueled by a combination of robust corporate earnings, easing inflation concerns, and ongoing technological advancements driving investor sentiment.

Here were the major moves:

In recent commentary, President Donald Trump indicated that Iran has “already agreed” to forgo nuclear weapons, while also cautioning that this commitment could be subject to change. Furthermore, he expressed skepticism about the continued enforcement of U.S. port blockades against Iran beyond Labor Day. These statements come amidst reports from Iranian media suggesting a cessation of communication exchanges between Iranian and U.S. negotiators. However, the White House, through President Trump and Secretary of State Marco Rubio, has actively refuted these claims, characterizing them as “Fake News” and asserting that dialogue remains ongoing. This nuanced geopolitical landscape presents a critical area to monitor, as shifts in international relations can significantly impact energy markets, supply chains, and global trade. The ongoing diplomatic efforts, despite conflicting signals, suggest a complex negotiation process aimed at de-escalation and securing regional stability, with potential implications for global oil prices and related industries.

CNBC’s upcoming exclusive interview with Israeli Prime Minister Benjamin Netanyahu will offer further insights into regional diplomacy and its economic ramifications.

Federal Housing Finance Agency Director Bill Pulte has been appointed as the acting director of national intelligence, succeeding Tulsi Gabbard. This transition, announced by the President, places Pulte, who lacks traditional intelligence background, at the helm of critical U.S. intelligence agencies, including the CIA and NSA. The selection has drawn scrutiny from across the political spectrum, with concerns raised about potential politicization of intelligence gathering. Pulte’s tenure at the FHFA was marked by allegations of mortgage-related improprieties against political opponents, leading to fears that his new role could compromise the impartiality and effectiveness of U.S. intelligence operations. In the fast-evolving landscape of national security and cyber warfare, the integrity and independence of intelligence agencies are paramount. Analysts will be closely watching how Pulte navigates the immense responsibilities of his new position, particularly in safeguarding classified information and ensuring objective analysis in a complex global threat environment.

Macy’s shares saw a significant pre-bell surge of nearly 3% following the release of its first-quarter earnings report. The department store chain reported its strongest comparable sales performance in four years, signaling a positive trajectory in its ongoing turnaround strategy. CEO Tony Spring highlighted that better-than-expected sales and profitability prompted an upward revision of the company’s full-year forecast. This resurgence is a critical development for the department store sector, which has been grappling with shifting consumer habits and increased competition from online retailers. Macy’s strategic initiatives, including the closure of underperforming stores and a renewed focus on optimizing its core locations, appear to be yielding tangible results. The company’s ability to navigate these market dynamics and deliver growth will be a key indicator for the broader retail industry’s health. Meanwhile, beauty retailer Ulta Beauty also surpassed expectations for its first quarter, both in terms of revenue and earnings, leading to an increase in its full-year guidance. The company noted that fragrances emerged as its strongest performing category, now contributing 12% to its total revenue, illustrating the growing importance of specialized beauty segments.

In a significant move towards AI governance, President Trump signed an executive order mandating that artificial intelligence companies provide the federal government with access to their models prior to public release. This proactive measure aims to enable the government to assess AI capabilities and potential risks before widespread deployment. While the order requests voluntary participation, its implications for the rapidly evolving AI industry are substantial. Companies are in a race to launch new models and, in some instances, pursue public offerings. This directive introduces a new layer of regulatory consideration, potentially impacting development timelines and go-to-market strategies. The balance between fostering innovation and ensuring responsible AI development remains a critical challenge for policymakers and industry leaders alike. In parallel, AI company Anthropic is broadening access to its Mythos model, extending invitations to 150 partners across more than 15 countries. This expansion, contingent on partners meeting stringent security requirements, signals a growing demand for advanced AI solutions and a strategic approach to collaboration within the artificial intelligence ecosystem.

This report was compiled with contributions from CNBC correspondents.