5 things to know before the stock market opens Wednesday

Chip stocks fell across global markets yesterday, with names like Micron and Intel giving back some of their recent big runs amid the artificial intelligence infrastructure boom. The sell-off ushered a dark cloud over Wall Street and sent investors searching for safe corners of the equity market.

Here’s what to know:

President Donald Trump said this morning that Iran told the U.S. that there will not be tolls on the Strait of Hormuz, as well as no insurance costs or “other charges of any kind” on ships crossing the sea lane. “If this is false information, negotiations would end, immediately,” the president said in a Truth Social post.

Meanwhile, Treasury Secretary Scott Bessent told CNBC’s “Squawk Box” that his department will oversee frozen Iranian funds set to be released under the U.S.’ agreement with Tehran. Some congressional Republicans have pushed back on the deal — which includes plans to unfreeze funds and lift sanctions — over concerns that its concessions to Iran are too great.

All this comes after the Senate narrowly adopted an Iran war powers resolution yesterday, which calls for an end to U.S. hostilities. The resolution won’t be sent to Trump’s desk or become law, making the rare bipartisan rebuke of Trump purely symbolic.

Looking for insight into how Federal Reserve Chairman Kevin Warsh intends to reshape the central bank? The search for the next Atlanta Fed President could offer some clues.

Candidates for the position, which will get an FOMC vote next year, were previously considered under former Chair Jerome Powell. But as CNBC’s Matt Peterson and Steve Liesman report, that process was paused, in part so Warsh could oversee the selection, according to two people familiar with the matter.

Those people told CNBC that former Trump official Michael Faulkender was subsequently considered for the Atlanta post. It’s unclear whether Faulkender — who served as deputy Treasury secretary last year before briefly becoming acting commissioner of the IRS — is still in the running.

Shares of Cerebras are 10% lower in premarket trading after the AI chipmaker reported its first earnings report since going public last month.

The company said revenue soared 92% in the first quarter compared with a year ago, but weak guidance for its gross margin weighed on investors. Cerebras said it expects its core gross margin to come in between 36% and 38% in the second quarter, a decrease from 46.5% in the prior three-month period.

Speaking of recent IPOs: SpaceX shares closed 1% higher yesterday, breaking a three-day losing streak. The stock is catching the eye of short-sellers, but as CNBC’s Yun Li reports, many still seem hesitant about betting against Elon Musk.

The PGA Tour is entering a new chapter, and golf fans are finally getting a look at what’s changing.

As CNBC’s Dominic Chu reports, the new format will feature two separate series of tournaments divided by level of play, rather than one main tour schedule. The tour will also revive playoff events with “match play” — where winners are decided by head-to-head matchups — rather than “medal play.”

PGA Tour CEO Brian Rolapp said the organization is getting the changes ready for the 2028 season. The announcement comes ahead of this week’s Travelers Championship in Connecticut.

S&P Global said yesterday that workforce reductions at U.S. factories are nearing highs last seen in 2009 and during the pandemic.

— CNBC’s Sean Conlon, Lisa Han, Luke Fountain, Sam Meredith, Matt Peterson, Steve Liesman, Jordan Novet, Kai Nicol-Schwarz, Yun Li, Dominic Chu and Jeff Cox contributed to this report. Josephine Rozzelle edited this edition.