Meta-AMD chip deal, Trump's State of the Union and more in Morning Squawk

As investors prepare for the trading day, Wall Street is feeling the aftershocks of recent events, including new tariffs and ongoing concerns about artificial intelligence disruption. The Dow Jones Industrial Average experienced a significant decline of over 800 points, while the S&P 500 and Nasdaq Composite both fell by more than 1%. The Supreme Court's recent ruling on tariffs continues to create uncertainty, prompting economists to scramble for clarity on President Donald Trump's new global tariffs and their implications for the economy. FedEx has taken a bold step by suing the U.S. government, seeking a full refund for duties paid on tariffs that have since been reversed. This lawsuit marks the first major corporate response following Friday's decision, and Congressional Democrats are now pushing for the government to issue refunds to affected businesses. Tonight's State of the Union address by President Trump is expected to address the Supreme Court's ruling and the new tariffs, especially as public sentiment surrounding the economy under his administration turns increasingly negative. In a notable development, Meta has announced a multiyear partnership with Advanced Micro Devices (AMD), which will enable the social media giant to utilize up to 6 gigawatts of AMD's graphic processing units. This deal comes on the heels of a recent agreement with Nvidia, highlighting Meta's aggressive strategy in the AI chip market. The news has been favorable for AMD, whose shares surged over 13% in premarket trading. AMD's CEO, Lisa Su, is set to discuss the deal further during an appearance on CNBC's "Squawk on the Street" at 9:30 a.m. ET. In the pharmaceutical sector, Eli Lilly has unveiled a new version of its obesity drug, Zepbound, which now offers a month's supply in a single pen for easier administration. This innovation is priced starting at $299 through the LillyDirect platform. Meanwhile, Novo Nordisk has reported disappointing results from a trial of its experimental weight loss drug, causing its shares to plummet over 16%. In contrast, Eli Lilly's stock saw a boost of nearly 5% following the announcement. Additionally, a recent military operation in Mexico, supported by U.S. intelligence, resulted in the death of the Jalisco New Generation Cartel's leader. This event has triggered violent responses across various Mexican states, complicating logistics for air freight, trucking, and ports. The tourism sector is also reeling, with Carnival and Norwegian Cruise Line canceling stops in Puerto Vallarta, while Airbnb has enacted its "major disruptive events policy" in Jalisco and surrounding areas. Passenger airlines, which typically transport around 50% of air freight, have halted flights to Puerto Vallarta and Guadalajara. As trading volumes in leveraged funds and options soar—an increase noted since the pandemic—the financial landscape remains uncertain and highly dynamic.