5 things to know before the market opens Tuesday

Happy Tuesday. Some young shoppers likely spent the holiday weekend picking up Surfside and Sun Cruiser cans rather than White Claws this year. As CNBC’s Amelia Lucas reports, Gen Z is feeling seltzer fatigue and increasingly opting for non-carbonated drinks.

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

Here are five key things investors need to know to start the trading day:

U.S. Central Command said last night that U.S. forces conducted “self defense” strikes in Iran to protect American troops “from threats posed by Iranian forces.” The strikes came after President Donald Trump said Monday that negotiations with Iran were “proceeding nicely,” but warned that the U.S. would need to go back to “shooting” if a deal wasn’t reached.

Here’s what to know:

Kevin Warsh was officially sworn in as chair of the Federal Reserve on Friday. He is the first Fed chair to be sworn in at the White House since 1987.

Trump said in remarks at the event that he wants Warsh to be “totally independent,” telling the central bank’s new leader to “just do your own thing.” But at a campaign-style rally later the same day, Trump said he expects interest rates to come down “very quickly.”

As CNBC’s Jeff Cox notes, Fed watchers are wondering what Warsh’s promise for “regime change” at the Fed will look like. Some expect he will have the Fed take a smaller position in financial markets and set clearer rules on when the central bank should step in.

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

Huawei’s new approach, called “LogicFolding,” heats up the competition in China. Nvidia CEO Jensen Huang acknowledged to CNBC last week that his company has “largely conceded” the Chinese market to Huawei as it contends with U.S. export restrictions. The development also threatens Apple’s market share in China, where Huawei’s Mate 60 smartphone has increasingly won over consumers.

Between the downfall of Spirit Airlines and the surge in oil prices, Americans’ desire to travel is being put to the test this summer.

Airfare is at its highest level in four years, according to the Airlines Reporting Corporation. Road trippers aren’t faring much better: AAA data shows the national average for gasoline prices was at the highest since 2022 entering the popular Memorial Day travel period.

Even those who stayed local faced inflationary pressures. Prices for everything from hot dogs to movie tickets are up considerably from last year, according to government inflation data.

“The Mandalorian and Grogu” brought in $82 million in domestic ticket sales during its debut weekend. As CNBC’s Sarah Whitten notes, that’s Disney‘s lowest-ever opening haul for a Star Wars film.

Still, the movie exceeded box office projections and is expected to top $100 million for the entire holiday weekend. It earned around $63 million in international ticket sales.

Disney may also be looking at more than just the box office for signs of success. The movie further builds out the Star Wars brand, which is a part of Disney’s retail, streaming and amusement park arms.

Here’s what we’re keeping an eye on during this holiday-shortened week:

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

CJ Haddad assisted in the production of this newsletter. Josephine Rozzelle edited this edition.