5 things to know before the stock market opens on Tuesday

This is CNBC’s Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.

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

OpenAI officially announced its latest artificial intelligence partnership yesterday, announcing a deal with Custom Chip. broadcom. The company’s stock ended Monday’s trading up nearly 10% on the news of the partnership, but shares were down 3% in pre-market trading this morning.

Here’s what you need to know:

The companies, which have been working together for 18 months, are building and deploying a 10 gigawatt custom AI accelerator as part of the deal. Financial terms of the deal were not disclosed, but analysts quickly suggested that OpenAI was an unnamed $10 billion customer that Broadcom touted in September. However, Charlie Kawas, president of Broadcom’s Semiconductor Solutions Group, told CNBC that the mystery customer is a different company. As CNBC’s Mackenzie Sigalos reports, the deal brings OpenAI into the chip manufacturing business, further positioning it as a hyperscaler competitor. Nvidia, taiwan semiconductor, ON Semiconductor and micron technology Yesterday’s trading also showed an upward trend. Tech stocks led market rally early in the week, S&P500 Howard Marks, co-founder of Oaktree Capital Management, said he would not yet describe AI trade as a “bubble.” “The valuation…is high, but not unusual,” he told CNBC.

President Donald Trump visited Israel and Egypt yesterday to finalize a peace deal that he said ended the war in Gaza. Trump first arrived in Tel Aviv to commemorate the release of Israeli hostages captured by Hamas during the 2023 invasion of Israel, and in a speech to Israel’s parliament, he said a “long, painful nightmare” was over for both Israelis and Palestinians.

Experts told CNBC’s Lori Ann LaRocco that despite the ceasefire, ocean transport vessels are unlikely to return to the Red Sea in the near future. The Houthi rebels, who launched attacks on trade ships in the waters, said they would not stop attacking maritime routes.

Shares of US rare earth mining companies continue to rise ahead of this morning’s opening bell. Stocks posted solid gains in Monday trading after President Trump reignited trade tensions between the U.S. and China by tightening China’s export controls.

As CNBC’s Spencer Kimball reports, Beijing’s rare earth export restrictions could particularly hurt the U.S. defense industry. The Pentagon is reportedly accelerating efforts to stockpile $1 billion worth of critical minerals that are key components of several U.S. weapons systems. The fact that the United States does not have its own rare earth reserves is “scandalous,” Jeremy Siegel of the University of Pennsylvania told CNBC yesterday.

The average price of a new car reached a new high last month. According to Cox Automotive, the average price paid in September exceeded $50,000 for the first time in history.

But while price tags are soaring and wealthy consumers are shelling out big bucks, car loan delinquency rates among people with poor credit ratings are near record highs. As CNBC’s Mike Weiland reports, this is the latest example of a “K-shaped” economy in the United States.

—CNBC’s Mackenzie Sigalos, Ashley Caputo, Spencer Kimball, Sam Meredith, Lori Ann LaRocco, Liz Napolitano, Holly Ellyatt, Samantha Subin and Mike Weiland contributed to this report. Josephine Rozzelle edited this version.