5 things to know before the market opens on Tuesday

Happy Tuesday. Some young shoppers this year likely spent the holiday weekend buying cans of Surfside or Sun Cruiser instead of White Claw. As CNBC’s Amelia Lucas reports, Gen Z is feeling carbon fatigue and is increasingly choosing non-carbonated beverages.

Stock futures are rising this morning. The market is coming off a winning week.

Here are five important things investors need to know to start their trading day.

U.S. Central Command announced last night that the U.S. military conducted a “self-defense” strike in Iran to protect U.S. forces “from threats posed by Iranian forces.” The airstrikes came after President Donald Trump said on Monday that negotiations with Iran were “progressing well” but warned that the United States would have to go back to “shooting” if a deal was not reached.

Here’s what you need to know:

On Friday, Kevin Warsh was officially sworn in as Chairman of the Federal Reserve System. He will be the first Fed chair to be sworn in at the White House since 1987.

In remarks at the event, Trump said he wanted Warsh to be “completely independent” and told the central bank’s new leader to “do whatever you want.” But at a campaign-style rally later that day, President Trump said he expected interest rates to drop “very quickly.”

As CNBC’s Jeff Cox points out, Fed watchers are wondering what Mr. Warsh’s promise of “systemic change” at the Fed will look like. Some believe he will seek to reduce the Fed’s position in financial markets and create clearer rules for when the central bank should intervene.

Chinese technology leader Huawei on Monday announced a new design approach for smartphone chips. As CNBC’s Evelyn Chen reports, this news has implications for both. Nvidia and apple.

Huawei’s new approach, called “LogicFolding,” is increasing competition in China. Nvidia CEO Jensen Huang admitted to CNBC last week that the company had “significantly conceded” the Chinese market to Huawei as it battled U.S. export controls. The development also threatens Apple’s market share in China, where Huawei’s Mate 60 smartphone is popular with consumers.

Between Spirit Airlines’ bankruptcy and soaring oil prices, Americans’ appetite for travel is being tested this summer.

Airfares are at their highest level in four years, according to the Airlines Reporting Corporation. Things aren’t much better for road trippers. The national average for gas prices is at its highest since 2022, entering the popular Memorial Day travel period, according to AAA data.

Those who remained local also faced inflationary pressures. Government inflation data shows prices for everything from hot dogs to movie tickets have risen significantly since last year.

“The Mandalorian and Grogu” brought in $82 million in domestic ticket sales in its opening weekend. As CNBC’s Sarah Witten points out, that’s disneyLowest opening box office gross for a Star Wars movie in history.

Still, the film exceeded box office projections and is expected to gross more than $100 million over the entire holiday weekend. International ticket sales were approximately $63 million.

Disney may be looking beyond box office revenue for signs of success. The film further strengthens the Star Wars brand, which is part of Disney’s retail, streaming and amusement parks division.

Here’s what we’re focusing on this Vacation Shortened Week:

—CNBC’s Spencer Kimball, Lim Hui Jie, Garrett Downs, Joseph Wilkins, Justina Lee, Kevin Bruninger, Jeff Cox, Evelyn Chan, Leslie Josephs and Sarah Witten contributed to this report.

CJ Haddad helped produce this newsletter. Josephine Rozzelle edited this version.