5 things to know before the stock market opens on Tuesday

This is CNBC’s Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.

Here are five important things investors need to know to start their trading day.

Yesterday, the stock market recovery rally came to a halt. The culprit: the drop in cryptocurrencies that puts a damper on risk-on investments.

Here’s what you need to know:

All three major indexes broke their winning streaks on the 5th. Small-cap stocks also felt a pullback. russell 2000 Investor sentiment worsened due to the decline in crypto assets. Bitcoin It fell 6%, its worst day since March. Cryptocurrency-related stocks and some artificial intelligence-related stocks also fell during trading, showing that animal spirits are spooky. However, retail stocks bucked the downward trend. State Street SPDR S&P Retail ETF (XRT) With the holiday shopping season in full swing, the weekly increase was more than 6%. Follow us here for live market updates.

President Donald Trump has said he knows who he will nominate to be the next Federal Reserve Chairman, but the public will have to wait. Still, people seem to be coming to the same conclusion, said Kevin Hassett, director of the National Economic Council.

Prediction markets generally see Hassett as the likely successor to Jerome Powell. Hassett told Fox News this weekend that he would be “happy to serve” if asked.

As CNBC’s Jeff Cox writes, the central bank’s next chair will step into the role at a pivotal time for the U.S. economy. Additionally, the Fed will likely have to navigate the current divide over the direction of monetary policy.

apple Yesterday, the company announced that its head of artificial intelligence, John Gianandrea, will be stepping down and being replaced by John Gianandrea. microsoft and google alum Amar Subramanya; As CNBC’s Kiff Lesswing writes, this is the biggest shake-up in the company’s AI efforts since it launched its Apple Intelligence suite last year. The move comes as experts warn that Apple’s AI technology lags behind its peers.

meanwhile, Nvidia announced that it had purchased the company for $2 billion. synopsis Holding stake as part of partnership to accelerate computing and AI engineering work. Nvidia CEO Jensen Huang called the agreement a “huge deal” yesterday on CNBC’s “Squawk on the Street.” Synopsys stock soared nearly 5% in Monday trading, while Nvidia rose more than 1%.

costco The White House is being taken to court over President Donald Trump’s tariffs. Wholesalers filed a lawsuit last week seeking a full refund of the new duties they paid this year. The lawsuit also seeks to block the collection of these duties while the Supreme Court considers their legality.

Dozens of other companies have filed similar lawsuits in hopes of securing refunds if the Supreme Court rules against President Trump’s tariffs. Even if a court finds the tariffs illegal, Costco pointed to a Dec. 15 deadline in its complaint that may not refund the tariffs already paid and warned that it may not be able to repay them later.

White House Press Secretary Khush Desai said in a statement that Costco’s lawsuit highlights the “economic impact of the company’s failure to comply” with President Trump’s tariffs.

One of the most important online shopping events of the year was scheduled for yesterday. However, companies using Shopify faced several hours of disruption, sending the e-commerce company’s stock price down nearly 6% in yesterday’s trading.

Shopify said some sellers were having trouble logging in and others were unable to access the POS system. By mid-afternoon, Shopify, which said it processed more than 10% of all e-commerce transactions in the U.S., said its platform was starting to recover.

—CNBC’s Fred Imbert, Liz Napolitano, Pia Singh, Jeff Cox, Ashley Caputo, Kiff Leswing, Dan Mangan, Annie Palmer and Ryan Baker contributed to this report. Josephine Rozzelle edited this version.