Apple shares pop, Musk drops OpenAI lawsuit

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More records broken
THE S&P500 And Nasdaq Composite close at recordspushed by investors who seem to abandon Nvidia has Apple shares, propelling the iPhone maker to a new high. Meanwhile, the Dow Jones Industrial Average fell 120 points ahead of key inflation data and the conclusion of the Federal Reserve meeting on Wednesday. The 10 years Treasury the yield fell in anticipation of the Fed's economic projections. Oil prices in the United States remained stable OPEC having maintained its forecasts for demand and economic growth.

Apple lollipops
Appleshares of reached a record a day after announcing its breakthrough in artificial intelligence. Siri will get an upgrade with Apple Intelligence and the company will partner with OpenAI, giving users access to ChatGPT. Morgan Stanley said Apple's AI capabilities strongly position the company as “the most differentiated consumer digital agent.” And these features will encourage consumers to upgrade their iPhones, which should “accelerate device replacement cycles.”

Musk drops OpenAI lawsuit
Elon Musk dropped his case against OpenAI, CEO Sam Altman and Chairman Greg Brockman, who alleged breach of contract and fiduciary duty. The trial centered on a scheduled hearing in San Francisco, centered on Musk's claim that OpenAI had strayed from its original nonprofit mission of seeking profits under MicrosoftControl. Legal experts have questioned the basis of the case because the underlying contract was not a formal written agreement.

GM cuts electric vehicle sales

General engines reduced sales and production of electric vehicles forecast as demand declined for the industry as a whole. GM Chief Financial Officer Paul Jacobson said the company now expects production of 200,000 to 250,000 electric vehicles this year, down from the previously announced range of 200,000 to 300,000. Stocks of the company rose 1.3% after the automaker announced plans to redeem $6 billion in stock.

Automobiles bring down Hong Kong
Asian markets were mixed as investors awaited the Fed's interest rate decision and US inflation data. that of Hong Kong Hang Seng fell 1.45%, driven by the automotive sector, before a decision by the European Union on electric vehicle prices. Mainland China's CSI 300 index fell 0.2% as inflation has increased for the fourth consecutive month. THE Taiwan Weighted index hits all-time high as tech heavyweights Taiwan Semiconductor Manufacturing Company And Hon Hai Precision Industry also known as Foxconn, jumped more than 3% each. While South Korea Kospi increased by 0.44%, both in Japan Nikkei 225 and Australia S&P/ASX200 traded downward.

[PRO] Persistent skepticism
Apple's stock performance has been outpaced by other big tech companies this year, with some analysts attributing the lag to the company's lack of a publicly articulated AI strategy. While many analysts expect Apple's new AI offering to entice consumers to buy new iPhones, not all analysts are convinced.

Federal Reserve faces new inflationary headache as Goldman Sachs forecasts Brent crude oil prices could rise as high as $86 per barrel in the third quarter. The investment bank cites a surge in summer demand and a significant supply shortfall, which could push up gasoline prices and further complicate policy decisions by the Fed at its next meeting.

While former World Bank President David Malpass criticized the Fed's past mistakesHe also took aim at the Biden administration's fiscal policies on CNBC's “Squawk Box,” saying, “The Fed made a big mistake by staying at zero for a long time. It takes years to fix this problem. Rates d real interest rates are high enough, we have to recognize that the inflation is coming from what the rest of the government is doing, in terms of regulation. We have to recognize that the government has emptied the SPR, the strategic oil reserve, at the wrong time. »

Malpass was referring to the administration release of 1 million barrels of gasoline reserves before the July 4 holiday.

He also highlighted the U.S. government's overspending, saying, “The U.S. government is sucking up money from around the world to spend on the things it wants… This causes businesses to invest less and we end up with a slow growth in the future and large deficits. »

Despite the upcoming release of consumer price inflation data before the bell, former Atlanta Fed President Dennis Lockhart told “Squawk Box” that's unlikely to happen . have a significant impact the outcome of the Fed meeting. He said: “In my experience, when people are sort of locked into their positions. It would take a pretty surprising report on the CPI to change the fundamental momentum of the meeting… Overall, This is going to be a boring meeting.”

It may sound boring, but it's inevitable that Wall Street will scrutinize the Fed's decision and its proposed guidance to determine when it might consider cutting rates. Currently, the CME's FedWatch tool suggests there is a 50/50 chance of a rate cut in September and a 66% chance in November.

For more, CNBC's Jeff Cox explains there could be a huge impact of the consumer price index and the Fed meeting.

CNBC's Lim Hui Jie, Jeff Cox, Lisa Kailai Han, Alex Harring, Spencer Kimball, Hayden Field, Samantha Subin, Ashley Capoot and Michael Wayland contributed to this report.