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Op-Ed: Wall Street needs to develop its own AI systems, not rely on Big Tech

Stocks edged higher Tuesday as investors waited for more insight on trade discussions between the U.S. and China.The Dow Jones Industrial Average added 82 points, or 0.2%. The S&P 500 rose around 0.3% along with the Nasdaq Composite.Talks between U.S. and Chinese officials in London continued for the second day. U.S. Commerce Secretary Howard Lutnick said on Tuesday that the discussions are “going well, and we’re spending lots of time together” and that he expects the talks to continue all day.Traders are monitoring the discussions for signs of a deal that doesn’t involve the countries enforcing lofty tariffs on one another. Both nations agreed last month to temporarily slash their duties, which was seen as a major breakthrough in trade negotiations after U.S. President Donald Trump unveiled his plan for broad and steep levies on imports.Stocks have rallied so far in June as investors remain hopeful about ongoing global trade discussions and overall strength in the market. Gains have been powered by strong corporate earnings results and a revival in tech stocks, given the recent slew of artificial intelligence announcements.“Technically, shares have been on a nice run eclipsing key levels to get back on track. Longer-term they started the week right above its downtrend line going back to its annual highs,” said Jay Woods, chief global strategist of Freedom Capital Markets.“The rally looks like many other technology names that are trying to get back to old highs. The good news is that given the change in trajectory, even weakness looks to have a soft-landing spot and good entry point from a risk/reward perspective,” Woods added.To be sure, some investors are concerned that the current tariffs could drive inflation higher in the near future, potentially weighing on equities.“Today, while the picture is not completely clear, enforceable tariffs exist,” said Mark Malek, chief investment officer of Siebert Financial. “The Fed is concerned that the real inflationary effects have not yet shown up yet. Based on the complex collection of tariffs in effect today, we would expect aggregates such as autos, apparel, and foods to show initial signs of tariff-driven inflation.”Insmed, J.M. Smucker, SolarEdge among stock moving in midday tradingCheck out the companies making the biggest moves midday:Topgolf Callaway Brands — The stock popped 5%, adding to its nearly 15% surge in the previous session. Topgolf got a boost on Monday after a director disclosed the purchase of additional shares.Insmed – Shares surged more than 26% after the global biopharmaceutical company announced positive results from a Phase 2b study of treprostinil palmitil inhalation powder, a once-daily treatment for pulmonary arterial hypertension. United Therapeutics, in turn, dropped more than 15%.J.M. Smucker – The food company pulled back 13% after its fiscal fourth-quarter revenue of $2.14 billion missed the FactSet consensus estimate of $2.18 billion. The company’s guidance also missed expectations. For the full list, read here.— Pia SinghTesla stock to come under pressure on poor core business fundamentals, says Wells Fargo Tesla stock could come under pressure due to poor fundamentals, according to Wells Fargo.“TSLA fundamentals of the core auto business continue to weaken,” analyst Colin Langan wrote in a note to clients on Monday note. “May global deliveries are down 23% [year over year]. While ‘order’ pricing on the website appears stable over the [last 12 months], aggressive financing promotions continue to act as price cuts. Risk to Q2 margin remains given lower leverage.”The bank reiterated an underweight rating on Tesla stock, alongside a $120 per price target. CNBC Pro subscribers can read the full story here. — Brian EvansOpenAI strikes deal with Google’s cloud service, Reuters saysJaque Silva| Nurphoto | Getty ImagesOpenAI will add Alphabet’s Google cloud service in a deal that was finalized in May, sources told Reuters. Under the deal, Google’s cloud unit will supply additional computing capacity for OpenAI’s existing infrastructure for training and running its AI models.The collaboration between both companies comes as both tech giants compete in the artificial intelligence sector. The move also marks OpenAI’s latest effort to diversify its compute sources beyond Microsoft, including its high-profile Stargate data center project, Reuters said in the Tuesday report.— Pia SinghStocks open little changed on Tuesday as trade talks continueThe Dow Jones Industrial Average was hovering near the flatline lower shortly after the opening bell. The S&P 500 and Nasdaq Composite each added about 0.15%.— Pia SinghInsmed, J.M. Smucker, Taiwan Semiconductor among the names making moves premarketJoe Raedle | Getty ImagesJ.M. Smucker products sit on a grocery store shelf on September 11, 2023 in Miami, Florida. Check out the stocks making moves before the opening bell Tuesday:Insmed – Shares surged more than 26%. The global biopharmaceutical company announced positive results Tuesday from a Phase 2b study of treprostinil palmitil inhalation powder, a once-daily treatment for pulmonary arterial hypertension.J.M. Smucker – The food company’s stock pulled back about 8% after its fourth-quarter revenue of $2.14 billion missed the consensus estimate of $2.18 billion, according to FactSet. Earnings for the quarter beat expectations, however. The company’s guidance also missed expectations.Taiwan Semiconductor Manufacturing – U.S.-listed shares of the chipmaker rose more than 2% after its revenue for May saw a 39.6% increase compared with last year. Revenue for January through May was 42.6% higher than the same period a year ago. Read the full list of stocks here.— Sean ConlonParamount announces second round of layoffsParamount Global is cutting 3.5% of its U.S.-based workforce, or several hundred employees, in the company’s second round of layoffs. The company notified its staff of the impending layoffs on Tuesday morning, according to a memo viewed by CNBC. Paramount continues to grapple with the decline of the traditional pay-TV bundle and macroeconomic headwinds.Shares of Paramount dipped about 0.2% in premarket trading. The stock has gained 14.7% this year.— Pia Singh, Lillian RizzoEuropean defense stocks sell off ahead of more U.S.-China trade talksGenya Savilov | Afp | Getty ImagesA Ukrainian tank crew of the 33rd Separate Mechanized Brigade load tank ammunition onto a Leopard 2A4 tank during a field training exercise at an undisclosed location in Ukraine, on April 30, 2025. Germany’s Renk makes gearboxes for Leopard 2 tanks which have been sent to the country.European defense stocks notched broad declines on Tuesday morning, with the regional Stoxx Aerospace and Defense index extending losses to trade 0.5% lower.That puts the index — which has gained almost 50% so far this year — on course for its third consecutive day of losses.Investors are monitoring U.S.-China trade talks, which are set to continue in London on Tuesday. At the center of the discussions are critical minerals, upon which China imposed export restrictions in April in response to U.S. tariffs on Chinese exports.Rare earth minerals are critical for the production of weaponry and defense technologies.German defense giant Rheinmetall was last seen trading 2.3% lower, while Germany’s Renk and Sweden’s Saab were down 7.9% and 4.1%, respectively.— Chloe TaylorFund managers lobby Congress over Section 899 to avert foreign investors leaving the U.S.American fund managers are lobbying Congress over a provision tucked inside President Donald Trump’s tax bill that they say could lead to foreign investors “quickly” pulling investments out of the U.S.The “One Big Beautiful Bill Act,” which passed through the U.S. House of Representatives in May, aims to penalize foreign-owned firms operating in the U.S. and that are from countries with “unfair foreign taxes” under a provision known as Section 899. It is currently being considered by the Senate.The Investment Company Institute (ICI), which represents fund houses in the U.S., is lobbying Congress for an amendment as it warns the bill in its current form also impacts most foreign investments in U.S. stock markets, according to documents seen by CNBC.Read the full story here.— Ganesh RaoAsia-Pacific markets trade mixed as investors await details of U.S.-China trade talksAsia-Pacific markets traded mixed Tuesday as investors awaited further details on the U.S.-China trade talks, which were slated to continue for a second day.Officials from both countries held trade talks in London on Monday, with U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer meeting with their Chinese counterparts led by Beijing’s Vice Premier He Lifeng.Japan’s benchmark Nikkei 225 pared earlier gains to end the day 0.32% higher at 38.211.51, while the broader Topix index was flat at 2,786.24.South Korean markets rose for the fifth consecutive session. The Kospi index advanced 0.56% to end the day at 2,871.85, while the small-cap Kosdaq added 0.91% to 771.20.Mainland China’s CSI 300 index closed 0.51% lower at 3,865.47 while Hong Kong’s Hang Seng Index was flat at 24,162.87.Over in Australia, the S&P/ASX 200 benchmark advanced 0.84% to end the day at a record high of 8,587.20.Meanwhile, India’s benchmark Nifty 50 moved up 0.15% while the BSE Sensex index was flat as of 1.40 p.m. Indian Standard Time.— Amala BalakrishnerVaccine makers slip as RFK retires vaccine advisory board membersChristina House | Los Angeles Times | Getty ImagesBrandon Guerrero, of Compton, California, is given both a flu and Covid vaccine at CVS in Huntington Park, California, Aug. 28, 2024.Some vaccine stocks took a leg down in Monday’s extended trading after Health and Human Services Secretary Robert F. Kennedy Jr. said he was “retiring” all members of a vaccine advisory panel.Kennedy said Monday in a Wall Street Journal opinion piece that he would remove all 17 members of the Advisory Committee on Immunization Practices, also known as the ACIP. This group advises the Centers for Disease Control and Prevention.AstraZeneca lost around 1%, while Moderna slid 0.9%. Pfizer and Merck shed 0.3% and 0.2%, respectively.— Alex Harring, Annika Kim ConstantinoSee the stocks moving after hoursThese are some of the stocks making notable moves after hours:Cracker Barrel Old Country Store — Shares of the chain restaurant slipped 8.1%. The company announced a proposed private offering of $275 million in convertible senior notes that would be due in 2030.Limoneira — The agriculture stock tumbled 8.5% after posting results for the fiscal second quarter that were worse than the year-ago period. Limoneira lost 17 cents per share on an adjusted basis and saw $35.1 million in revenue. That compares to adjusted earnings of 44 cents per share and $44.6 million in revenue in the second quarter of the previous fiscal year. — Alex HarringStock futures are little changedFutures tied to the Dow, S&P 500 and Nasdaq 100 all traded up by about 0.1% shortly after 6 p.m. ET on Monday night.— Alex Harring

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