Iran strikes, Lindsey Graham, Apple takes OpenAI to court and more in Morning Squawk

Good morning! As investors gear up for the trading day, significant developments over the weekend have sent ripples through the market. Stock futures are showing a downward trend following air strikes exchanged between the U.S. and Iran. The U.S. Central Command reported that American forces targeted various locations to diminish Iran's capacity to threaten international shipping routes in the Strait of Hormuz. In a surprising political turn, Senator Lindsey Graham of South Carolina passed away on Saturday due to a sudden illness at the age of 71. His office confirmed that the cause was an aortic dissection linked to cardiovascular disease. Graham's unexpected passing raises concerns about potential impacts on Republican strategies in Congress, especially with discussions about who may succeed him, including names like Rep. Nancy Mace and Governor Henry McMaster. In the tech realm, Apple has initiated legal action against OpenAI, claiming that the AI company has misappropriated trade secrets in its pursuit of hardware development. This lawsuit marks a dramatic shift, given that the two companies formed a partnership just last year. Tensions have escalated further as Tesla CEO Elon Musk reignited a feud with OpenAI’s CEO Sam Altman on social media, dubbing him 'Scam Altman' and implying that Altman's success is the source of his obsession. Meanwhile, the tech industry continues to grapple with the aftermath of Amazon's largest layoff round to date, which has left many former employees struggling in a tightening labor market. Reports indicate that layoffs in the tech sector reached their peak since 2024, primarily attributed to AI-related cuts. On the legislative front, a bipartisan housing bill designed to enhance supply and affordability was enacted on Saturday, despite the absence of President Trump's signature. Although he chose not to veto it, the bill's provisions aim to foster home construction and restrict large investors from dominating the market. However, experts caution that prospective homebuyers should not anticipate immediate price drops. Stay tuned for more updates as the week unfolds, with a host of developments to watch in both markets and politics.