Meta-AMD chip deal, Wall Street's AI angst, Trump's State of the Union and more in Morning Squawk

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Happy Tuesday. I found yesterday’s snowfall to be quite idyllic, granted I didn’t actually step foot outside until it had stopped (don’t repeat that to my many colleagues who found themselves on shoveling duty).

S&P 500 futures are little changed this morning following a losing day.

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

1. Manic Monday

Traders work at the opening bell on the floor of the New York Stock Exchange (NYSE) in New York, on February 20, 2026.

Timothy A. Clary | Afp | Getty Images

New tariffs and continued artificial intelligence disruption fears were a recipe for trouble on Wall Street yesterday. The Dow Jones Industrial Average tumbled more than 800 points in the session, while the S&P 500 and Nasdaq Composite each dropped more than 1%.

Here’s what happened:

• New features from Anthropic hit different corners of the tech sector. Fresh programming capabilities for Claude Code caused IBM to have its worst day since 2000, while the AI startup’s new security tool sent cybersecurity stocks tumbling.
• Anthropic will be on investors’ radars again today: The Claude maker is set to host a closely followed event later this morning.
• Financial stocks including American Express and Mastercard pulled back in yesterday’s session after a Citrini Research post raised alarm about how AI could drive up unemployment and hinder the economy.
• Meanwhile, bitcoin broke below $65,000 as investors shy away from risk-on assets. Crypto-related stocks like Coinbase and Strategy retreated in tandem.
• Shares of Home Depot are more than 2% higher before the bell after the retailer beat Wall Street’s top- and bottom-line expectations for the fourth quarter.
• Follow live markets updates here.

2. State of the tariff

UNITED STATES - MARCH 4: President Donald Trump delivers his address to a joint session of Congress in the U.S. Capitol on Wednesday, March 4, 2025. Vice President JD Vance, left, and Speaker of the House Mike Johnson, R-La., listen behind. (Bill Clark/CQ-Roll Call, Inc via Getty Images)

Bill Clark | Cq-roll Call, Inc. | Getty Images

The Supreme Court’s tariff ruling continued to ripple through Wall Street and Washington, D.C. yesterday, as economists race to figure out what President Donald Trump’s new global tariffs mean for the economy.

FedEx sued the U.S. government yesterday in a bid to get a “full refund” of the money it paid for the now-reversed tariffs — the first major company to do so in the wake of Friday’s decision. Congressional Democrats are trying toforce the government to issue refunds to businesses who paid the duties.

The Supreme Court’s decision and Trump’s new tariffs are likely to be a topic of the president’s State of the Union address tonight, which comes as voters turn negative on the economy under his leadership.

3. Double dipping

Lisa Su, chair and chief executive officer of Advanced Micro Devices Inc. (AMD), during the 2026 CES event in Las Vegas, Nevada, US, on Monday, Jan. 5, 2026. At CES, the biggest names in tech will make the case for artificial intelligence for a target audience of investors, corporate clients and, perhaps just as importantly, ordinary shoppers who have yet to be fully sold on the idea of AI-infused gadgets. Photographer: Bridget Bennett/Bloomberg via Getty Images

Bloomberg | Bloomberg | Getty Images

Meta this morning announced a multiyear deal with Advanced Micro Devices that will see the social media company deploy up to 6 gigawatts of AMD’s graphic processing units.

As CNBC’s Katie Tarasov notes, the chip agreement comes just one week after Meta inked a deal with Nvidia to use its processors. Today’s announcement is seen as a major win for AMD, which has lagged Nvidia in the AI chip market. Shares of AMD soared more than 13% in premarket trading.

AMD CEO Lisa Su will join CNBC’s “Squawk on the Street” at 9:30 a.m. ET to discuss the deal. Watch live on CNBC+ or CNBC Pro.

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4. GLP-1 pen

An Eli Lilly & Co. Zepbound injection pen arranged in the Brooklyn borough of New York on March 28, 2024.

Shelby Knowles | Bloomberg | Getty Images

Eli Lilly yesterday launched a new version of Zepbound, its popular obesity drug, that contains a month’s worth of doses in one pen.

As CNBC’s Annika Kim Constantino reports, the pen could be a more convenient alternative for patients, who would need fewer devices each month to administer the drug. Prices began at $299 for the lowest-dose offered on the company’s LillyDirect platform.

Meanwhile, Novo Nordisk said yesterday that its experimental weight loss drug failed to match Eli Lilly’s tirzepatide in a trial. Novo Nordisk’s U.S. shares plunged more than 16% in Monday’s session, while Eli Lilly’s stock climbed nearly 5%.

5. Mexico

Smoke billows amid a wave of violence, with torched vehicles and gunmen blocking highways in more than half a dozen states, following a military operation in which a government source said Mexican drug lord Nemesio Oseguera, known as “El Mencho,” was killed, in Puerto Vallarta, Jalisco, Mexico, February 22, 2026.

@morelifediares via Instagram | Reuters

A Mexican military operation aided by U.S. intelligence over the weekend killed the head of the Jalisco New Generation Cartel. Violence has since broken out in several Mexican states, creating challenges for air freight, trucking and ports.

Tourism has also been upended: Carnival and Norwegian Cruise Line canceled planned stops in Puerto Vallarta, while Airbnb activated its “major disruptive events policy” in Jalisco and other impacted areas. Passenger airlines, which carry around 50% of air freight, cancelled flights to Puerto Vallarta and Guadalajara.

The Daily Dividend

Trading volumes in leveraged funds and options have surged since the pandemic, according to data from Direxion first reported by CNBC.

—_ CNBC’s Sean Conlon, Pia Singh, Samantha Subin, Leslie Josephs, Melissa Repko, Liz Napolitano, Justin Papp, Dan Mangan, Garrett Downs, Annika Kim Constantino, Elsa Ohlen, Lori Ann LaRocco and Contessa Brewer, as well as The Associate Press,_ contributed to this report. Josephine Rozzelle edited this edition.