U.S.-Iran negotiations, Meta trial verdict, OpenAI shuts Sora and more in Morning Squawk

In today's edition of the Morning Squawk newsletter, we highlight significant stories shaping the markets and tech landscape. This Wednesday, stock futures are showing an upward trend following a tough day for investors. President Donald Trump announced that negotiations between the U.S. and Iran are currently underway, suggesting that Tehran is beginning to exhibit more rational behavior. This development has sparked optimism among investors about a potential resolution to ongoing tensions. In legal news, a jury in New Mexico found Meta, the parent company of Facebook and Instagram, liable for failing to protect children from predators on its platforms. The jury ruled that Meta must pay $375 million in damages, citing violations of the state’s unfair practices act. In response, a spokesperson for Meta expressed disagreement with the verdict and indicated plans to appeal. Anthropic, an artificial intelligence startup, faced the courts to contest a ban imposed by the Defense Department on its products. U.S. District Judge Rita Lin remarked that the Pentagon's action appears to be an attempt to undermine the company. OpenAI has announced the discontinuation of its short-form video app, Sora, which achieved one million downloads shortly after its launch. The company intends to trim expenses as it prepares for a potential public offering, and it has promised to provide further information about the preservation of work done on the platform. Additionally, OpenAI's CFO, Sarah Friar, revealed that the company is in the process of securing $10 billion in new funding, emphasizing that the fundraising is broad-based across the investment ecosystem. On the legislative front, Senate Republicans and the White House are nearing an agreement that could potentially resolve the partial government shutdown, particularly focusing on funding for the Department of Homeland Security. Delta Air Lines announced the suspension of airport escort services for Congress members, attributing the decision to the ongoing shutdown and the resultant long lines at airports. In a significant pharmaceutical development, Merck has acquired Terns Pharmaceuticals for $6.7 billion, marking its third major acquisition in the last year as it looks to expand its portfolio ahead of the expiration of patent protection for its renowned Keytruda drug in 2028. Terns’ shares saw a rise of over 5% in pre-market trading, while Merck's stock remained relatively stable. Stay tuned for more updates as these stories unfold and their impacts on the market become clearer.