A view of a Tesla Cybercab, also known as the Robotaxi, during the Silicon Valley Auto Show at Santa Clara Convention Center in California, U.S., on Feb. 22, 2025.
Tayfun Coskun | Anadolu | Getty Images
One consequence of the tariff tumult caused by U.S. President Donald Trump over the past month is that investor enthusiasm over artificial intelligence has waned. Only three of the Magnificent Seven stocks — all of which have a finger in the AI pie — are positive this year, with Nvidia eking out a tiny 0.07% gain year to date.
The dampened investor mood over AI — relative to the frenzy over the theme in 2024, at least — doesn’t reflect the priorities of companies, which are still spending on AI infrastructure and leveraging the technology to find new revenue streams. Google-parent Alphabet will be adding a new AI subscription service that costs $249.99 a month, while Tesla is banking on AI to power its robotaxi ambitions.
Indeed, Josh Brown, co-founder and CEO of Ritholtz Wealth Management, wrote on CNBC PRO that AI will still be the main catalyst for markets despite tariffs sucking all the air out of the trading floor since Trump’s “Liberation Day” on April 2. And with the rally in stocks flagging Tuesday, AI could eventually provide more wind to markets’ sails.
What you need to know today
S&P 500 breaks six-day win streak
U.S. markets slipped Tuesday. The S&P 500 lost 0.39%, ending its six-day run in the green. The Dow Jones Industrial Average lost 0.27% and the Nasdaq Composite declined 0.38%. Asia-Pacific markets rose Wednesday. Hong Kong’s Hang Seng Index added roughly 0.5% as shares of Chinese battery manufacturer Contemporary Amperex Technology jumped around 4.2%, extending gains from Tuesday when it closed more than 16% higher on its trading debut.
Musk wants to continue leading Tesla
Tesla CEO Elon Musk said Tuesday there is “no doubt” about the fact that he’s committed to leading the company for the next five years. He wants to have “sufficient voting control” so he cannot be ousted by activist investors, Musk said, and added that he will devote “a lot less” to political spending in the future because he’s “done enough.” Musk was speaking at Bloomberg’s Qatar Economic Forum in Doha.
Tesla will launch robotaxis in June
In a separate interview with CNBC’s David Faber on Tuesday at Tesla’s headquarters in Austin, Texas, Musk said he expects Tesla and xAI to continue buying chips from semiconductor giants Nvidia and AMD. Musk also confirmed the company will have robotaxis in Austin by the end of June. Rival robotaxi firm Waymo, owned by Alphabet, told CNBC the same day it has reached 10 million paid trips so far.
Growth of Japan exports slows
Japan’s exports grew 2% in April, government data showed Wednesday. Even though that figure is in line with expectations in a Reuters poll, it marks the slowest increase since October last year and the worst showing since September when exports contracted 1.7%. Japan is being charged a 25% levy on its auto, steel and aluminum exports to the U.S., which could be weighing on its export volume.
New ‘Google AI Ultra’ subscription
Google is adding a new artificial intelligence subscription service called “Google AI Ultra.” The plan includes the Google’s flagship AI app Gemini with the newly announced Gemini 2.5 Pro “DeepThink” mode, new filmmaking AI tool Flow and note-to-podcast tool Notebook LM, the company announced Tuesday at its annual developer conference Google IO. The service will cost $249.99 per month.
[PRO] Artificial intelligence, not tariffs
Josh Brown, CEO of Ritholtz Wealth Management and CNBC PRO contributor, said Tuesday the most important theme for the stock market right now is not tariffs, but rather artificial intelligence. Find out why he thinks so and the AI stock he bullish on.
And finally…
Japan’s farm minister Taku Eto responds to questions from media after submitting his resignation to Prime Minister Shigeru Ishiba at the prime minister’s office in Tokyo on May 21, 2025.
Str | Afp | Getty Images
Japan’s farm minister said he has never had to buy rice. That cost him his job
Japan’s farm minister Taku Eto stepped down on Wednesday, domestic media reported, following public outrage over his comments on getting free rice.
Eto said on Sunday that he has never had to buy rice as he received ample amounts of the grain as gifts from supporters — a comment that struck a nerve with locals struggling with rocketing prices of the beloved staple.
Japan has been grappling with soaring rice prices for months as inclement weather and the country’s long-held policy to protect local farmers’ interests crimps supplies.
