5 things to know before markets open on Wednesday

Happy Wednesday. When I read that Jimmy Kimmel was back in the White House crosshairs, I couldn’t help but feel an intense sense of deja vu.

S&P 500 futures were little changed this morning. Yesterday, all three major averages recorded negative sessions.

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

It’s Federal Government Day. The central bank will announce its latest monetary policy decisions this afternoon, followed by Chairman Jerome Powell’s press conference, which could be his last as head of the Federal Reserve.

Here’s what you need to know:

The Fed is widely expected to announce that it will keep interest rates on hold at 2pm ET, and Powell is expected to strike a cautious tone at the news conference amid continued concerns about the health of the labor market and the path of inflation. This week is likely to be Powell’s last meeting at the helm of the central bank, as his term expires on May 15, unless his successor, Kevin Warsh, is confirmed by then. The Senate Banking Committee is scheduled to vote on Warsh’s confirmation today. Respondents to CNBC’s Fed survey expressed doubts about Mr. Warsh’s ability to maintain his independence and lower rates amid inflationary pressures, and were also eyeing the Supreme Court, which could rule this morning on President Trump’s attempt to fire Fed Director Lisa Cook.

In a shocking announcement, the United Arab Emirates announced yesterday that it will withdraw from OPEC and OPEC+ this week. The move comes after the UAE became the target of missile and drone attacks from OPEC member Iran.

UAE Energy Minister Suhail Al Mazrouei told CNBC that his country made the decision to leave at a time when it would have the least impact on other members of the oil-producing group. The UAE was the third largest producer in the group after Saudi Arabia and Iraq.

As CNBC’s Spencer Kimball and Pippa Stevens report, the UAE’s withdrawal has raised concerns about whether cartels will be able to influence the oil market. It would also hinder Saudi Arabia’s ability to manage OPEC.

It’s the third day of the high-profile trial between Elon Musk and OpenAI CEO Sam Altman, with Silicon Valley in the ascendancy.

After both sides gave opening statements yesterday, Musk was the first witness called to testify. The SpaceX CEO answered questions about his early life, his many companies, and his founding role at OpenAI. It’s worth noting that this billionaire entrepreneur said he wanted to start OpenAI to oppose OpenAI. google.

He is scheduled to return to the stand today. Before that, review all the important moments from yesterday.

shares of starbucks It rose about 5% this morning after the coffee chain yesterday beat second-quarter expectations on both lines. The company also raised its outlook for full-year comparable earnings and same-store sales growth.

Starbucks said its U.S. sales increased, driven by demand for protein cold foam and new bakery products, with traffic increasing for the second straight quarter during the recent period.

CEO Brian Nicol called the quarter a “milestone” and “a turning point in our company’s turnaround” in a video posted with the results. Nicole will appear on CNBC’s “Squawk on the Street” at 9 a.m. ET. Watch live on CNBC or CNBC+.

—CNBC’s Jeff Cox, Steve Reisman, Sean Conlon, Samantha Subin, Yun Li, Hugh Song, Laura Kolodny, Jeffrey Kopp, Ashley Caputo, Ali Levy, Amelia Lucas, Spencer Kimball, Pippa Stevens, Emma Graham and Dan Murphy contributed to this report.

Davis Giangiulio helped produce this newsletter. Josephine Rozzelle edited this version.