5 things to know before the market opens Wednesday

Happy Wednesday. Treasury Secretary Scott Bessent told CNBC this morning that President Donald Trump’s 15% global tariff would be implemented this week. He also said the U.S. would make “a series of announcements” to support oil trade in the Gulf.

Stock futures are rising this morning. All three major averages closed lower yesterday.

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

The stock market cut its losses yesterday after Trump said the U.S. would insure Gulf shipping and, if necessary, escort tankers through the Strait of Hormuz. The midday reversal was reminiscent of Monday’s dramatic market rebound as investors continue to monitor the U.S.-Iran war.

Here’s what to know:

OpenAI CEO Sam Altman told staffers yesterday that the company won’t “get to make operational decisions” on how the military utilizes its technology. Employees at OpenAI and Alphabet — which is reportedly in talks with the Pentagon over the usage of its Gemini bot — have called for stricter guardrails on the military’s use of AI.

“So maybe you think the Iran strike was good and the Venezuela invasion was bad,” Altman said, according to a partial transcript of the meeting reviewed by CNBC. “You don’t get to weigh in on that.”

OpenAI won a Defense Department contract last week after the Pentagon blacklisted its rival, Anthropic. Federal Communications Commission Chairman Brendan Carr told CNBC yesterday that Anthropic “made a mistake” when negotiating with the Defense Department.

Blackstone president Jon Gray defended the quality of loans from the firm’s main private credit fund yesterday, telling CNBC that “we feel pretty darn good” when looking at credit quality, borrowing volume and EBITDA growth.

The alternative asset management company allowed investors to withdraw nearly 8% of its BCRED private credit fund, according to a Monday filling. Blackstone shares fell nearly 4% in yesterday’s session following the news and dragged on other private credit names during the session.

As CNBC’s Hugh Son notes, alternative asset managers’ moves to allow investors to cash out have exacerbated concerns about the health of the private credit sector. Gray told CNBC that his firm has faced “a ton of noise” as these fears have gained traction in recent months.

Commerce Secretary Howard Lutnick voluntarily agreed to testify before the House Oversight Committee over his connection to sex offender Jeffrey Epstein, Rep. James Comer announced yesterday.

The Cabinet secretary has been under intensifying pressure from both sides of the aisle to discuss his ties to Epstein after recently released records showed their relationship was more extensive than previously known. Lutnick has not been accused of wrongdoing, and he told Axios that he has “done nothing wrong” and wants “to set the record straight.”

The House Oversight Committee yesterday also asked Kathryn Ruemmler, Goldman Sachs’ top lawyer, to testify about her connection to Epstein, according to her spokesperson. Ruemmler “has done nothing wrong” and “welcomes the opportunity to appear,” her spokesperson said.

Gen Z wants to be offline. The result: $230 notebooks, digital cameras and dollhouse furniture.

As CNBC’s Megan Sauer reports, the generation is spending money on old-school hobbies. Business owners selling products like rotary phones or needlepoint kits are seeing their revenue rise while the average costumer age slides.

There’s a reason for this wave of nostalgia spending. When political and economic instability rises, consumers tend to turn to products and experiences tied to their or their parents’ childhoods, according to Marni Shapiro, co-founder of The Retail Tracker.

Pinterest shares surged more than 9% yesterday after activist firm Elliott Investment Management made a $1 billion investment. The social media company said it would use the money to buy back stock.

— CNBC’s Sean Conlon, Lora Kolodny, Jennifer Elias, Annie Palmer, Pia Singh, Ashley Capoot, Jennifer Elias, MacKenzie Sigalos, Hugh Son, Kevin Breuninger, Arjun Kharpal, Megan Sauer and Samantha Subin contributed to this report. Josephine Rozzelle edited this edition.