SpaceX's IPO, Nvidia earnings, Bezos on the AI bubble and more in Morning Squawk

In a bustling morning for investors, key developments are emerging that could shape the trading landscape. After a tumultuous start to the Memorial Day travel season, where delays at New York's LaGuardia Airport were attributed to a sinkhole shutting down a runway, stock futures are showing slight declines following a positive day on Wall Street. Nvidia has once again exceeded expectations with its quarterly earnings, showcasing a remarkable 85% increase in revenue driven by booming sales from its data center division. However, shares of the semiconductor giant are slightly down in pre-market trading, marking what could be its fourth consecutive pullback following earnings announcements. In a significant move, SpaceX has officially filed its prospectus with regulatory authorities, paving the way for what is anticipated to be a historic IPO. The company, led by Elon Musk, plans to trade on the Nasdaq under the ticker symbol SPCX. According to the prospectus, SpaceX estimates a total addressable market of a staggering $28.5 trillion, primarily outside its current operations. Notably, the filing reveals that Musk retains 85% of voting power, and a substantial portion of the company's capital expenditures in the first quarter was directed towards artificial intelligence initiatives. Meanwhile, reports suggest that OpenAI might confidentially submit its IPO filing as soon as tomorrow, with a representative emphasizing that the company's focus remains on executing its current plans. In the retail sector, shares of Walmart dipped by 2% in pre-market trading after the company released a disappointing outlook for the upcoming year. CFO John David Rainey indicated that consumers may experience increased financial strain as the positive effects of high tax returns diminish and fuel prices remain elevated. Conversely, E.l.f Beauty saw a 9% surge in its shares post-market after surpassing fourth-quarter expectations and announcing plans to reverse some tariff-related price increases in light of rising gas costs. The Federal Reserve also stirred the pot with its recent meeting minutes, indicating that higher interest rates might be necessary if inflation continues to be driven by the ongoing conflict in Iran. However, some officials hinted that a decrease in rates could occur if labor market conditions or inflation show signs of cooling. The Fed had previously maintained interest rates at its April meeting amid the highest dissent level since 1992. In an engaging interview, Amazon founder Jeff Bezos addressed concerns regarding a potential AI bubble, stating, "Even if it does turn out to be a bubble, you shouldn't worry about it because the bubble is driving investment, and much of that investment will prove to be beneficial." Bezos also commented on tax policies, advocating for a system where the bottom half of earners pay no income tax, and he criticized the public perception of the wealthy. His remarks, particularly in response to New York City Mayor Zohran Mamdani's critiques, sparked considerable discussion. Lastly, Intuit's shares fell by 15% ahead of the market opening, following the announcement of substantial job cuts, adding another layer of concern for investors as they navigate an evolving economic landscape.