
This is CNBC’s Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.
Here are five key things investors need to know to start the trading day:
1. Shutdown showdown
The federal government will shut down on Wednesday unless Congress can agree on a stopgap funding bill. President Donald Trump is expected to meet with the top four congressional leaders today after abruptly canceling a meeting with Democratic leadership last week. The president has warned of mass firings of federal workers if a deal cannot be reached.
Here’s what to know:
- While Democrats want the funding bill to include extensions to Affordable Care Act insurance subsidies, Republican leaders are saying that debate should wait until after a shutdown is averted.
- Markets have typically brushed off shutdowns in recent history. However, the broader economic landscape is leaving some investors concerned that this time could be different.
- In other news out of Washington, Trump posted a cartoon image depicting him firing Federal Reserve Chair Jerome Powell on social media — his latest jab at the central bank chief.
- Cleveland Fed President Beth Hammack also told CNBC’s “Squawk Box Europe” this morning that it is “a challenging time for monetary policy.”
2. AI’s dark underbelly
Boonchai Wedmakawand | Moment | Getty Images
Last year, a group of friends learned that a man they knew turned their social media pictures into pornographic deepfakes using a so-called “nudify” site. Such platforms represent a small but growing segment of the artificial intelligence space.
The dark side of the AI boom typically flies under the radar, but has caught the attention of lawmakers. As CNBC’s Jonathan Vanian reports, the group of women have become key in the fight against nonconsensual, AI-generated pornography. Read CNBC’s full investigation into these sites here.
3. What goes up…
Traders work on the floor of the New York Stock Exchange.
NYSE
Stocks ended last week in the red, a significant vibe shift after recently hitting all-time highs. The benchmark S&P 500 recorded its first losing week in four, while the small cap-focused Russell 2000 snapped a seven-week win streak.
Despite last week’s pullback, the stock market’s recent gains have pushed a measure of public U.S. companies’ total value against GDP to an all-time high of 217%. That’s past levels indicating traders are “playing with fire,” Berkshire Hathaway CEO Warren Buffett said in 2001.
Looking ahead, investors are gearing up for a slate of employment data due this week. Follow live markets updates here.
4. Taking the wheel
A Jet Blue Airlines plane taxis at Los Angeles International Airport on May 29, 2025 in Los Angeles, California.
Justin Sullivan | Getty Images
Honeywell is testing out new alerts that would give pilots more reaction time in hopes of avoiding close-call situations at airports, which have dominated headlines in recent years.
While serious airplane accidents are rare, a series of recent incidents have raised concern about how to best ensure safety in situations when every moment matters. Safety experts have pushed for innovation in cockpit alerts similar to what Honeywell is currently exploring.
CNBC’s Leslie Josephs rode in a Boeing 757 test plane for Honeywell’s new alert system. Here’s what she saw.
5. Sugar rush
Swig drinks.
Courtesy: Swig
With the help of social media and reality TV, the “dirty soda” craze is expanding far beyond its Utah roots.
“Dirty soda” — which refers to pop-based drinks with flavored syrups, cream or other ingredients mixed in — was first coined by the Utah-based chain Swig 15 years ago. Now, companies from PepsiCo to TGI Fridays are jumping on the trend as it gains traction nationwide, CNBC’s Amelia Lucas reports.
The numbers don’t lie: 2.7% of U.S. eateries serve a carbonated soft drink that contains cream or milk, up from 1.5% a decade ago, per Datassential.
The Daily Dividend
Here’s some of what we’re keeping an eye on this week:
- Monday: Carnival earnings (before the bell)
- Tuesday: Nike earnings (after the bell); S&P/Case-Shiller home price index (July); consumer confidence (September); JOLTS (August)
- Wednesday: ADP Employment Survey (September)
- Thursday: Weekly jobless claims
- Friday: Jobs report (September)
CNBC Pro subscribers can see a full calendar and rundown for the week here.
— CNBC’s Kif Leswing, Erin Doherty, Sam Meredith, Leslie Josephs, Sean Conlon, Yun Li and Amelia Lucas contributed to this report. Josephine Rozzelle edited this edition.
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