CNBC Daily Open: Despite Tariffs Taking Center Stage, AI Remains Key for Markets

• The S&P 500 dropped by 0.39%, bringing an end to its six consecutive days of gains.
• The CEO of Tesla, Elon Musk, stated that he will be dedicated to heading the company over the upcoming five-year period.
• Musk separately stated that Tesla will have robotaxis operational in Austin by the end of June.
• Google is introducing a new artificial intelligence subscription service named "Google AI Ultra."
• Apple reinstated the Epic Games game Fortnite into its app store, five years following its initial removal.
• The foremost topic for markets remains AI, according to Josh Brown, who leads Ritholtz Wealth Management as its CEO.

As a result of the turmoil surrounding tariffs initiated by U.S. President Donald Trump in recent weeks, interest from investors in artificial intelligence has diminished. Among the Magnificent Seven stocks, all of which are involved in AI to some extent, only three have shown gains for the year so far. Nvidia has managed to secure a marginal increase of just 0.07 percent year-to-date.

The less enthusiastic investor sentiment regarding AI – compared to the excitement seen in 2024, at least – does not mirror the focus areas of businesses, which remain steadfast. spending on AI infrastructure By utilizing technology to discover fresh income sources. Google’s parent company, Alphabet, plans to introduce a new AI subscription service priced at $249.99 per month. Meanwhile, Tesla is relying on artificial intelligence to drive their vision for autonomous taxis.

Certainly, Josh Brown, who co-founded and leads Ritholtz Wealth Management, penned an article on PRO asserting that artificial intelligence remains the primary driver for market movements, even as tariffs have dominated discussions since Trump’s “Liberation Day” announcement on April 2nd. With stock prices showing signs of slowing down this Tuesday, AI might soon offer additional momentum to the financial markets.

Here’s what you should be aware of today

The S&P 500 ends its six-day winning run.

U.S. markets slipped Tuesday The S&P 500 dropped by 0.39%, bringing an end to its six consecutive days of gains. Meanwhile, the Dow Jones Industrial Average fell by 0.27%, and the Nasdaq Composite decreased by 0.38%. In Europe, the pan-STOXX 600 index also experienced a decline. closed 0.73% higher Shares of UBS dropped by 3.3% subsequently a Bloomberg News report saying the Swiss government is expected to impose higher capital requirements on the banking giant.

Musk wants to continue leading Tesla

Tesla CEO Elon Musk stated on Tuesday that there is "no question" regarding the fact that he's committed to leading The company over the coming five years. His aim is to secure "adequate voting power" ensuring he won’t be removed by activist investors, according to Musk, who also stated this intention. dedicate much less to political expenditures In the future, he believes he has "done enough," said Musk during his appearance at Bloomberg's Qatar Economic Forum in Doha.

Tesla plans to introduce robotaxi services in June.

During an independent interview with CNBC’s David Faber on Tuesday at Tesla’s facility in Austin, Texas, Musk stated his expectation for both Tesla and xAI. To keep purchasing chips from major semiconductor companies NVIDIA and AMD. Musk further verified that the firm will have self-driving taxis in Austin by the end of June . The rival robotaxi company Waymo, which is owned by Alphabet, made the announcement on the same day. has reached 10 million paid journeys so far .

New 'Google AI Ultra' subscription

Google is adding a new artificial intelligence subscription service called "Google AI Ultra." The plan includes the Google's flagship AI app Gemini with the newly announced Gemini 2.5 Pro "DeepThink" mode, new filmmaking AI tool Flow and note-to-podcast tool Notebook LM, the company announced Tuesday at its annual developer conference Google IO. The service will cost $249.99 per month.

Fortnite back on App Store

Apple approved the Epic Games title Fortnite on Tuesday, restoring the game to its original state Apple Store in the United States ..., five years following its removal. Fortnite was removed from the App Store in 2020 Following Epic’s update to their online game to process payments directly rather than via Apple’s in-app purchase system—which carries fees as high as 30%—a court decision last month stated that Apple isn’t permitted to levy a commission when applications redirect elsewhere for payment processing.

[PRO] Artificial intelligence, not tariffs

Josh Brown, who serves as the CEO at Ritholtz Wealth Management and PRO contributor He stated on Tuesday that the predominant theme currently influencing the stock market isn't about tariffs, but instead revolves around artificial intelligence. Discover his reasons for thinking this way. and the AI stock he bullish on.

And finally...

Chinese companies seek alternatives to the U.S. market as fears of a trade war overshadow deal optimism.

The intense trade war with the U.S. has left lasting scars on Chinese exporters, with many looking to diversify away from the U.S., despite the temporary tariff reprieves, a private survey found.

According to a survey conducted by trade insurer Allianz Trade involving 4,500 exporters from various key economic regions, it was discovered that 95% of the Chinese exporters polled intend to, or have already decided to, increase their exports to markets beyond the U.S.

The U.S.-China "decoupling" remains a likely scenario over the medium term, the survey said, as Chinese exporters look to pivot away from the U.S. and American firms accelerate efforts to shift production out of China.

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