Trump's China trip, Nadella's testimony, GM layoffs and more in Morning Squawk

In today's market briefing, significant developments are unfolding that investors should closely monitor. Amazon, the e-commerce giant, has announced ambitious plans to implement 30-minute delivery in various U.S. cities, promising a new level of convenience for its customers. As stock futures show a slight decline ahead of the trading day, attention is drawn to President Donald Trump's upcoming trip to China. Trump is set to meet with President Xi Jinping, a summit that could impact discussions on the Iran conflict, Taiwan, and trade relations. Notably, a diverse group of executives from major corporations, including Tesla's Elon Musk and Apple’s Tim Cook, will accompany Trump. In the tech sphere, Microsoft CEO Satya Nadella testified in a high-profile trial involving Musk and OpenAI CEO Sam Altman. Musk's lawsuit against OpenAI, which implicates Microsoft as a key player, revolves around allegations of a breach of trust by the AI startup. During his testimony, Nadella clarified that Musk never raised concerns about Microsoft's investments in OpenAI, nor did he push for Altman's reinstatement after his controversial dismissal in 2023. The courtroom drama continues to unfold with former OpenAI co-founder Ilya Sutskever also taking the stand, followed by Bret Taylor, the board chairman. Altman is anticipated to testify today, adding further intrigue to the proceedings. In corporate news, General Motors is making headlines for cutting hundreds of salaried IT positions as part of a cost-reduction strategy. The layoffs, which began recently, are primarily affecting employees in Michigan and Texas. Although GM is streamlining its IT department, they are still looking to hire in this sector, indicating a complex landscape amid ongoing tech layoffs, particularly those related to AI advancements. Additionally, as fuel prices rise ahead of midterm elections, Trump and congressional Republicans are pushing for a suspension of the federal gas tax. While Trump has expressed intentions to lower the tax rate, any changes will require legislative action, as Congress controls tax policies. Meanwhile, traders on Kalshi are skeptical about immediate relief at the gas pump, predicting a significant likelihood of prices exceeding $5 per gallon. Lastly, April’s home sales data from the National Association of Realtors fell short of expectations, largely due to rising mortgage rates impacting buyer activity. Investors are advised to stay informed on these developments as they could significantly influence market dynamics.