U.S. markets face legal, retail and policy catalysts before Tuesday open

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U.S. markets: legal, retail, policy catalysts

Highlights

Tesla CEO Elon Musk loses lawsuit against OpenAI's Sam Altman due to statute of limitations, ending a three-week trial but plans to appeal.
Seagate shares fall nearly 7% after CEO Dave Mosley warns of supply limits, triggering a sell-off that drags Micron and SanDisk down over 5%.
President Donald Trump will swear in Kevin Warsh as Federal Reserve chair on Friday, requiring Warsh to divest many investments under Fed rules.

Key developments shaping the opening bell

As reported by CNBC, Tesla CEO Elon Musk loses his lawsuit against OpenAI CEO Sam Altman after a jury finds the case falls outside the three-year statute of limitations, a decision the judge immediately adopts. Musk says on social media that he plans to appeal, while the ruling ends a three-week trial and a years-long dispute that has drawn broad attention across Silicon Valley.

The market is also digesting fresh weakness in technology shares after Seagate sparks a sell-off in memory stocks. CEO Dave Mosley warns the company could struggle to meet rising demand because building new factories would take too long, sending Seagate shares down nearly 7% and pushing Micron and SanDisk down more than 5%.

In retail, Home Depot reports first-quarter results above expectations on both revenue and profit and keeps its full-year guidance unchanged. The company points to resilience among core homeowner customers despite higher gas prices, weaker consumer confidence and continued strain in the housing market.

Policy moves and broader market implications

Attention is also turning to monetary policy after a White House official tells CNBC that President Donald Trump will swear in Kevin Warsh as Federal Reserve chair on Friday. Warsh is set to become the 11th modern-era Fed chair and, under current rules for Fed officials, will need to divest many investments from his portfolio.

Trump has also dropped his $10 billion lawsuit against the Internal Revenue Service in exchange for a Justice Department plan to create a $1.8 billion fund for people claiming they are victims of what officials describe as lawfare. The department says the Anti-Weaponization Fund will be financed through its judgment fund and will stop processing claims no later than December 2028, while Democrats criticize the agreement sharply.

Our earlier coverage of Home Depot’s first-quarter results highlighted that the retailer topped expectations on revenue and adjusted EPS while reaffirming its fiscal 2026 guidance. We noted that core homeowners remain relatively resilient even as larger renovation projects are deferred, and that the company is expanding its pro-customer business through deals like the SRS Distribution acquisition to capture more share in specialty trade markets.

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