Apple’s upcoming CEO, Warsh’s approval hearing, the rise in psychedelic stocks, and additional updates in Morning Squawk.

Apple has made a surprising move: John Tarnas, their hardware chief, will take over as CEO from Tim Cook in September. Cook will step into the role of executive chairman.

This announcement caught investors off guard; however, some view the decision to focus on hardware leadership as encouraging. CNBC’s Jennifer Elias noted that Tarnas is stepping into a challenging environment, particularly with Apple’s perceived lag in artificial intelligence compared to its competitors. Addressing this gap will be a significant task for him.

In after-hours trading, Apple shares dropped, raising concerns about the company’s upcoming profit margins for 2026. It’s worth noting that since Cook succeeded Steve Jobs in 2011, Apple’s stock has surged over 1,930%.

Today is crucial for Kevin Warsh, nominated by President Trump to replace Jerome Powell as the Federal Reserve Chair. He’ll be appearing before the Senate Banking Committee for his confirmation hearing.

Ahead of the hearing, Warsh emphasized the importance of the Fed’s independence from political influence, stating that it should avoid straying into fiscal or social policy. He must balance Trump’s desire for lower interest rates with the need to stay above political pressures in his role.

During the hearing, he’s expected to face inquiries regarding his connections to Silicon Valley and his wealth. Notably, Senator Thom Tillis from North Carolina expressed he wouldn’t support Warsh’s confirmation until the investigation involving Powell concludes.

Yesterday saw the Nasdaq Composite’s winning streak come to a halt—its longest since 1992. Additionally, the S&P 500 also faced a decline, marking the first negative territory for the composite index in six years.

This downturn is attributed to President Trump’s threats of military action against Iran, which have contributed to fresh uncertainty in the markets. Sources indicated plans for U.S. peace talks in Pakistan, but Iran’s participation remains uncertain.

Interestingly, small-cap stocks defied this trend, as the Russell 2000 index reached new highs by both daily and closing price. Stay tuned for live updates on market movements.

UnitedHealth Group’s shares jumped over 7% this morning after strong first-quarter results bolstered their profit outlook for 2026.

A reduction in medical costs, which have soared in recent times, was primarily responsible for this positive outcome. The company reported a decline in its medical benefit ratio—an indicator that reflects the relationship between medical expenses and insurance premiums, typically benefitting insurers.

After the government announced better-than-expected payment rates for Medicare Advantage plans for 2027, UnitedHealth’s stock has seen a remarkable nearly 20% rise this month alone.

There’s growing enthusiasm surrounding psychedelic drugs following President Trump’s recent executive order to speed up research on substances like psilocybin and MDMA. Compass Pathways, for instance, experienced a remarkable 42% surge in stock prices, their best ever, while Atai Life Sciences gained over 21%, achieving their strongest trading day since July.

However, as CNBC’s Brandon Gomez highlighted, the question arises about whether psychedelics will navigate the same regulatory hurdles that cannabis faced. Sean Hauser from Vicente LLP noted that the governmental review process can be quite slow and frustrating.

More than $160 billion in tariff refunds have reportedly been issued since the Supreme Court invalidated many of President Trump’s tariffs in February. This could lead to significant profits for various major retailers, as outlined by Citi.