Iran says U.S. breached ceasefire, Anthropic's court loss, rate cut odds and more in Morning Squawk

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Good morning. We're minutes away from the release of February's personal consumption expenditures price index. Watch CNBC live for the numbers and analysis.

Stock futures are lower this morning. All three major averages posted major gains yesterday.

Here are five key things investors need to know to start the trading day:

The Dow Jones Industrial Average recorded its best day in a year yesterday, closing more than 1,300 points higher, even despite Iran's accusation that the U.S. breached the countries' ceasefire agreement.

Here's what to know:

Anthropic yesterday lost its bid to temporarily block its blacklisting by the Department of Defense. A federal appeals court in Washington, D.C. sided with the Pentagon, denying Anthropic reprieve while its lawsuit against the DOD plays out.

The artificial intelligence startup sued the Pentagon last month after the department labeled Anthropic a "supply chain risk" following disagreements about how the DOD could use its AI technology.

Wednesday's ruling comes after a federal judge in San Francisco sided with Anthropic in a separate, but related, case last month. That judge granted the company a preliminary injunction that blocks the government from enforcing a ban of Anthropic's Claude.

Minutes from the Federal Reserve's March meeting released yesterday showed central bank officials still expected to cut interest rates this year, despite widespread uncertainty from the Iran war and Trump's tariff policy.

"Many participants judged that, in time, it would likely become appropriate to lower the target range for the federal funds rate if inflation were to decline in line with their expectations," the minutes said. One cut in 2026 remained the consensus expectation.

Traders are also increasingly predicting one rate cut this year, following the U.S.-Iran ceasefire agreement. Market-implied odds of a cut this year rose to 43% after Trump's Tuesday night announcement, up from just 14%.

Nine months ago, Meta invested $14.3 billion in Scale AI, bringing on board its CEO Alexandr Wang in an effort to overhaul its own AI business. Now, it's got something to show for it.

The tech giant debuted its first major AI model yesterday — the first model out of the AI unit led by Wang. There's a lot on the line for the new model, dubbed Muse Spark. Meta had a hard time cracking the artificial intelligence market: Its most recent family of AI models saw a disappointing debut, all the while OpenAI, Anthropic and Google continue to dominate.

As CNBC's Jonathan Vanian notes, Muse Spark is also proprietary, a significant shift in Meta's strategy as the company looks for a new AI revenue stream.

With key barriers like high costs and injection-only options increasingly in the rear view mirror, usage of GLP-1 weight loss and diabetes drugs looks set to grow. That could be an opportunity for retailers, analysts say.

CNBC's Melissa Repko reports that researchers are predicting an increased demand for clothing as shoppers refresh their closets after losing weight. According to one estimate, GLP-1 users could bring about as much as $13 billion in additional spending on clothes each year.

A GLP-1-fueled shopping spree could be a boon for certain retailers, in particular. Shoppers may look for value at big-box stores such as Walmart and Target as they drop several sizes, while athletic brands could see a boost as GLP-1 users become more active.