Musk’s $1 billion bet, OpenAI’s spending spree, Swatch’s tariff swipe and more in Morning Squawk

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

Tesla shares jumped 6% in premarket trading this morning after CEO Elon Musk disclosed his first purchase of the electric vehicle maker’s stock on the open market in more than five years. Musk’s haul of more than 2.5 million shares equates to around $1 billion.

Here’s what else we’re following:

• Stock futures are higher after all three major averages finished last week with gains. The technology-heavy Nasdaq Composite closed Friday’s session at an all-time high.
• Investors are betting that the Federal Reserve will cut interest rates at its meeting this week. Fed funds futures are pricing in 100% probability of at least a quarter-point cut by the central bank, according to CME’s FedWatch tool.
• While the interest rate decision is largely considered a done deal, traders will closely monitor Fed Chair Jerome Powell’s speech for any clues about the future path for rates.
• Follow live market updates here.

There’s more breaking news this morning: China’s market regulator said in a preliminary probe that Nvidia violated anti-monopoly law when it acquired Mellanox.

China’s State Administration for Market Regulation on Monday did not specify how Nvidia allegedly broke the country’s anti-monopoly laws. The SAMR opened an investigation into Nvidia’s 2020 acquisition of the Israeli tech firm last year. China approved the deal at the time, but with some stipulations, CNBC’s Arjun Kharpal notes.

Nvidia shares slid about 2% before the bell.

Last week, Oracle became the latest public beneficiary of OpenAI’s spending spree.

Oracle thrilled investors with surging cloud growth projections, fueled in large part by expected spending from OpenAI. Shares of Oracle climbed more than 25% last week, marking its biggest weekly gain since 1999.

As CNBC’s Mackenzie Sigalos reports, this is part of a larger trend in the tech world. Oracle, Broadcom, Microsoft and Nvidia — four companies with ties to OpenAI — have seen their combined market caps grow by more than $4.5 trillion since the AI company burst onto the scene in 2022. However, some analysts are wary of OpenAI’s outsized influence on the sector.

The tides might be turning in the breakfast business. Data shows that morning meal traffic is rising at a far faster clip at convenience stores than it is at fast-food chains, CNBC’s Amelia Lucas reports.

That comes as regional chains like Wawa and Casey’s General Store invest in their food-service offerings. Breakfast traffic can also buoy sales for these businesses as demand for staples like gasoline and tobacco slides.

Swiss watchmaker Swatch isn’t taking President Donald Trump’s tariffs sitting down.

In a special edition watch it calls the “WHAT IF…TARIFFS?” model, Swatch swapped the position of the 3 o’clock and 9 o’clock markers in reference to Trump’s 39% levy on the European country. A spokesperson told CNBC that Swatch will “immediately stop” selling the watch if the U.S. changes its tariff policy. The watch is only available for purchase in Switzerland.

It’s a vastly different tariff response than the one taken by fellow Swiss watchmaker Rolex. The company’s CEO, Jean-Frederic Dufour, appeared alongside Trump in Rolex’s midcourt box at the U.S. Open earlier this month.