Meta's latest verdict, space stocks, prediction market legislation and more in Morning Squawk

In a significant ruling, a Los Angeles jury determined yesterday that Meta and YouTube failed to adequately inform users about the risks associated with their platforms, highlighting a pivotal moment in the social media landscape. This case is part of a broader discussion among experts who liken the current scrutiny of social media companies to the historic challenges faced by the tobacco industry. As the trading day begins, stock futures are on the decline following comments from former President Donald Trump, who urged Iranian negotiators to take negotiations seriously, especially after Tehran expressed its reluctance to engage with the U.S. Meanwhile, oil prices are showing an upward trend after a dip, fueled by concerns over a potential escalation in conflict. Major European oil companies have also warned of possible energy shortages stemming from the ongoing war, and the U.S. Postal Service announced plans to implement an 8% temporary fuel surcharge for deliveries due to rising oil costs. In a bright spot for investors, shares in space-related companies experienced a surge yesterday. Reports suggest that SpaceX may file for an IPO as early as this week, igniting enthusiasm across the sector. Firefly Aerospace's stock climbed by 16%, while AST SpaceMobile and Rocket Lab both saw increases of around 10%. Analysts indicate that the potential for SpaceX to execute one of the largest IPOs in history, targeting a valuation of $1.75 trillion, is driving this heightened interest. Furthermore, Citrini Research, which previously shocked investors with a pessimistic outlook on AI stocks, has issued a new warning. The firm's founder, James van Geelen, cautioned that sustained high energy prices could dampen consumer spending and corporate profits, potentially leading to a downturn in equity markets even if the Federal Reserve begins to cut interest rates. In legislative developments, a group of Democratic lawmakers introduced a bill aimed at banning prediction market betting on elections and significant government decisions. This initiative follows growing concerns about the implications of such markets, which have gained popularity and scrutiny alike. Representative Seth Moulton of Massachusetts has also enforced a ban on prediction markets within his office, marking a possible precedent in Congress. While investors are hopeful for a swift resolution to the U.S.-Iran tensions, Lloyd Blankfein, the senior chairman of Goldman Sachs, warned that the effects on the market could persist beyond the duration of the conflict. Stay informed with market updates and insights every weekday morning.