Fed day, Starbucks earnings, UAE leaves OPEC and more in Morning Squawk

• The Fed decision comes at 2 p.m. ET, with Powell expected to strike a cautious tone on labor markets and inflation; the Senate Banking Committee votes today on his nominated successor Kevin Warsh
• The UAE, OPEC's third-largest producer behind Saudi Arabia and Iraq, is leaving the oil cartel this week after being targeted by missile and drone attacks from fellow OPEC member Iran
• Starbucks reported its second straight quarter of traffic growth driven by protein cold foam and bakery items, with CEO Brian Niccol calling it a 'milestone' and 'the turn in our turnaround'

Market Summary: Fed Decision, OPEC Shake-up, and Starbucks Rally

Federal Reserve Policy Decision

The Federal Reserve is widely expected to hold interest rates steady at its 2 p.m. ET announcement today. Chair Jerome Powell's press conference may be his last, as his term expires May 15. The Senate Banking Committee votes today on successor nominee Kevin Warsh, though survey respondents express concerns about his potential independence. The Supreme Court may also rule on Trump's attempted firing of Fed Governor Lisa Cook.

UAE Exits OPEC

In a major development, the United Arab Emirates announced its departure from OPEC and OPEC+ this week following missile and drone attacks from Iran, a fellow member. As the third-largest producer in the cartel behind Saudi Arabia and Iraq, the UAE's exit raises questions about OPEC's ability to influence oil markets and undermines Saudi Arabia's leadership position within the organization.

Starbucks Beats Expectations

Starbucks shares surged approximately 5% after reporting better-than-expected quarterly earnings on both revenue and profit. The company raised its full-year guidance for comparable earnings and same-store sales growth, marking its second consecutive quarter of traffic growth. CEO Brian Niccol called it "the turn in our turnaround," crediting demand for protein cold foam and new bakery items.

Tech Sector Weakness

The S&P 500 and Nasdaq fell Tuesday after reports that OpenAI missed internal revenue growth targets, pressuring semiconductor stocks including Nvidia, Oracle, and Broadcom. OpenAI executives called the report "ridiculous."

Other Notable News

Day three of the Musk-Altman trial continues, with Elon Musk testifying about OpenAI's founding. JPMorgan CEO Jamie Dimon warned of a potential bond crisis driven by rising government debt levels.