CNBC Daily Open: Artificial intelligence is still key to markets despite tariffs overshadowing the technology

One consequence of the tariff tumult caused by U.S. President Donald Trump over the past month is that investor enthusiasm over artificial intelligence has waned. Only three of the Magnificent Seven stocks — all of which have a finger in the AI pie — are positive this year, with Nvidia eking out a tiny 0.07% gain year to date.

The dampened investor mood over AI — relative to the frenzy over the theme in 2024, at least — doesn't reflect the priorities of companies, which are still spending on AI infrastructure and leveraging the technology to find new revenue streams. Google-parent Alphabet will be adding a new AI subscription service that costs $249.99 a month, while Tesla is banking on AI to power its robotaxi ambitions.

Indeed, Josh Brown, co-founder and CEO of Ritholtz Wealth Management, wrote on CNBC PRO that AI will still be the main catalyst for markets despite tariffs sucking all the air out of the trading floor since Trump's "Liberation Day" on April 2. And with the rally in stocks flagging Tuesday, AI could eventually provide more wind to markets' sails.

S&P 500 breaks six-day win streak
U.S. markets slipped Tuesday. The S&P 500 lost 0.39%, ending its six-day run in the green. The Dow Jones Industrial Average lost 0.27% and the Nasdaq Composite declined 0.38%. The pan-European Stoxx 600 closed 0.73% higher. Shares of UBS fell 3.3% following a Bloomberg News report saying the Swiss government is expected to impose higher capital requirements on the banking giant.

Musk wants to continue leading Tesla
Tesla CEO Elon Musk said Tuesday there is "no doubt" about the fact that he's committed to leading the company for the next five years. He wants to have "sufficient voting control" so he cannot be ousted by activist investors, Musk said, and added that he will devote "a lot less" to political spending in the future because he's "done enough." Musk was speaking at Bloomberg's Qatar Economic Forum in Doha.

Tesla will launch robotaxis in June
In a separate interview with CNBC's David Faber on Tuesday at Tesla's headquarters in Austin, Texas, Musk said he expects Tesla and xAI to continue buying chips from semiconductor giants Nvidia and AMD. Musk also confirmed the company will have robotaxis in Austin by the end of June. Rival robotaxi firm Waymo, owned by Alphabet, told CNBC the same day it has reached 10 million paid trips so far.

New 'Google AI Ultra' subscription
Google is adding a new artificial intelligence subscription service called "Google AI Ultra." The plan includes the Google's flagship AI app Gemini with the newly announced Gemini 2.5 Pro "DeepThink" mode, new filmmaking AI tool Flow and note-to-podcast tool Notebook LM, the company announced Tuesday at its annual developer conference Google IO. The service will cost $249.99 per month.

Fortnite back on App Store
Apple approved the Epic Games title Fortnite on Tuesday, returning the game to the App Store in the U.S., five years after its removal. Fortnite was kicked off the App Store in 2020 after Epic updated its game over the web to take payments directly instead of through Apple's in-app payment mechanism, which charges fees of up to 30%. Last month, a judge ruled that Apple wasn't allowed to charge a commission when apps link out for payment.

[PRO] Artificial intelligence, not tariffs
Josh Brown, CEO of Ritholtz Wealth Management and CNBC PRO contributor, said Tuesday the most important theme for the stock market right now is not tariffs, but rather artificial intelligence. Find out why he thinks so and the AI stock he bullish on.

Chinese firms look for alternatives to the U.S. market as trade war worries dwarf deal hopes

The intense trade war with the U.S. has left lasting scars on Chinese exporters, with many looking to diversify away from the U.S., despite the temporary tariff reprieves, a private survey found.

Based on a poll of 4,500 exporters across several major economies, trade insurer Allianz Trade found that 95% of Chinese exporters surveyed are planning on, if not already, doubling down on exporting to markets outside the U.S. for their goods.

The U.S.-China "decoupling" remains a likely scenario over the medium term, the survey said, as Chinese exporters look to pivot away from the U.S. and American firms accelerate efforts to shift production out of China.