5 things to know before the stock market opens Monday

Here are the most important news items that investors need to start their trading day:

U.S. stocks were set to fall to start the week. Shares of AI companies – which have driven the market in recent months – tumbled amid concerns about a possible lower-cost AI competitor in China. The potential pullback could come after the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite posted two straight winning weeks. The broad-based S&P hit an intraday record on Friday. Earnings will shape the market this week, as more than half of the so-called Magnificent 7 stocks will post results. The Federal Reserve will also announce its latest policy decision Wednesday. Follow live market updates.

Shares of AI-linked tech companies including Nvidia, Broadcom and Microsoft fell in premarket trading as investors digested the capabilities of the Chinese startup DeepSeek. The company claims it developed the open-source large-language model it launched in December for only $6 million – a small fraction of the billions U.S. tech companies are spending on AI. Its reasoning model released last week reportedly outperformed OpenAI on several third-party tests. JPMorgan analyst Sandeep Deshpande explained the concern in a note, writing: “Thus, with these considerable sums flowing into AI investments in the US, that Deepseek’s highly efficient and lower resource-intensive AI model has shown such significant innovation and success is posing thoughts to investors that the AI investment cycle may be over-hyped and a more efficient future is possible.”

The concerns over U.S. tech stocks come during a week when many of the sector’s key companies will report earnings. Meta, Microsoft, Apple and Tesla will all post results. Outside of tech, other major companies reporting include General Motors, Boeing, Starbucks, Comcast, Chevron and Exxon Mobil. Here are the key results to watch this week:

• Tuesday: General Motors, Boeing (before the bell); Starbucks (after the bell)
• Wednesday: Meta, Microsoft, Tesla, IBM, Levi Strauss (after the bell)
• Thursday: Southwest Airlines, Comcast (before the bell); Apple, Intel (after the bell)
• Friday: Chevron, Exxon Mobil (before the bell)

The first potential trade war of the second Trump administration ended before it really started. The White House delayed threatened 25% tariffs on Colombian goods after it said the South American nation reversed course and agreed to accept U.S. military flights carrying deported migrants. While Colombia is not one of the main U.S. trading partners, it is the second largest provider of coffee to the U.S., and is a major crude oil exporter. Investors and consumers are still waiting to see whether President Donald Trump will slap tariffs on Chinese, Canadian and Mexican goods.

While Trump has had a friendly ties with many business sectors, his relationship with pharmaceutical companies hasn’t always been smooth. The industry hopes that will change during Trump’s second term in office. Executives are eager to see whether the White House tries to reform the insurance middlemen known as pharmacy benefit managers. They are also watching to see whether Trump or the Republican Congress try to make any changes to Medicare drug price negotiations with Congress. Read more about what to expect for the industry here.

– CNBC’s Fred Imbert, Pia Singh, Jenni Reid, Jesse Pound and Annika Kim Constantino contributed to this report.