WHCD shooting, DOJ ends Powell probe, Musk vs. Altman and more in Morning Squawk

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Good morning. We have a big week ahead of us: In addition to earnings reports from key automakers and five of the “Magnificent Seven,” the Federal Reserve will make its next monetary policy decision and the trial between Elon Musk and Sam Altman kicks off.

S&P 500 futures are little changed this morning after the index climbed to record highs last week.

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

The White House Correspondents’ Dinner erupted into chaos on Saturday after an armed man allegedly charged a security checkpoint, prompting President Donald Trump and other administration officials to be evacuated. Trump later said that one officer was shot but “saved” by his bulletproof vest.

Here’s what to know:

• In a press conference at the White House following the incident, Trump said that U.S. Secret Service agents had “taken down” the suspected gunman, who was identified as Cole Allen.
• Acting Attorney General Todd Blanche told CNN that the suspect, a teacher from California, was likely targeting members of the Trump administration.
• Allen is expected to be arraigned today.
• Trump renewed his calls for the construction of the White House ballroom in the wake of the incident, saying it wouldn’t have happened if the event was held in the event space on White House grounds.
• Leaders both in the U.S. and abroad condemned the attempted attack, which has been widely viewed as the latest incident of political violence in America.

Earlier on Saturday, Trump said he axed plans to send U.S. representatives to Pakistan for ceasefire negotiations with Iran. The president said on social media that if Iran wanted to talk with the U.S., “all they have to do is call.”

Trump said that Iranian leaders improved their offer to end the war after he canceled the U.S. delegation’s trip, but it was “not enough.” Axios reported that Iran proposed a deal to reopen the Strait of Hormuz and postpone discussions on the country’s nuclear program.

Brent crude prices surpassed the $106 per barrel this morning as hopes for renewed peace talks between the U.S. and Iran faded, putting downward pressure on stock futures. Follow live market updates here.

The Justice Department ended its high-profile criminal investigation of Fed Chair Jerome Powell on Friday, a major reversal after U.S. Attorney Jeanine Pirro said just days prior that she was committed to the probe.

The move clears the path for Kevin Warsh, Trump’s pick to succeed Powell. Sen. Thom Tillis, who had pledged to block Warsh’s nomination as long as the probe into Powell continued, said yesterday that he would now support Warsh’s confirmation.

With his criminal investigation dropped and less than a month left in his term as chair, Powell now has a choice to make: Will he stay on as a Fed governor for two more years, or will he follow historical precedent and step away from the central bank when his time as chair expires?

Jury selection begins today in the trial between Elon Musk and Sam Altman at a federal courthouse in Oakland, California. As CNBC’s Ashley Capoot reports, the legal battle is expected to be a showdown between two of the biggest players in tech.

Musk claims in the $134 billion lawsuit that OpenAI, Altman and OpenAI President Greg Brockman reneged on a promise to keep the artificial intelligence startup a nonprofit. OpenAI has repeatedly called the suit “baseless.”

The trial kicks off as both Musk and Altman ready for major business milestones. OpenAI is targeting a market debut as soon as the fourth quarter, while Musk is preparing to take SpaceX public in what’s expected to be a record-setting IPO.

Musk’s Tesla is beta testing an in-vehicle version of xAI’s Grok chatbot. First rolled out last year, it allows drivers to give voice commands to their car’s navigation system.

Tesla is one of several automakers attempting to integrate AI into cars, with the goal of giving drivers a hands-free way to access information. However, some auto safety experts are warning that such a feature could provide a new distraction for drivers on the road.

CNBC’s Rob Ferris tested out the technology in a Tesla in New York City. Here’s what he saw.

Here’s what we’re monitoring this week:

• Tuesday: UPS, General Motors, JetBlue, Spotify and Coca-Cola earnings (before the bell); Starbucks and Robinhood earnings (after the bell); consumer confidence data for April
• Wednesday: Humana, Biogen and AbbVie earnings (before the bell); Meta Platforms, Amazon, Microsoft, Alphabet, Qualcomm, Ford, Chipotle and Mattel earnings (after the bell); Federal Reserve decision
• Thursday: Cigna, Merck, Eli Lilly, Bristol-Myers Squibb and Wayfair earnings (before the bell); Apple, Reddit, Amgen and Rivian earnings (after the bell); GDP data for the first quarter; personal consumption expenditures price index for March
• Saturday: Berkshire Hathaway earnings

— CNBC’s Kevin Breuninger, Terri Cullen, Adam Jeffrey, Garrett Downs, Ryan Ermey, Azhar Sukri, Sarah Whitten, Dan Mangan, Matt Peterson, Jeff Cox, Ashley Capoot, Rob Ferris and Lora Kolodny contributed to this report.

Davis Giangiulio assisted in the production of this newsletter. Josephine Rozzelle edited this edition.