Buffett steps down, Wall Street bounces back, 2027 'truck wars' and more in Morning Squawk

Happy Friday. In today's edition, we have the latest on the debate over whether to slow the development of artificial intelligence. There may even be some lessons to learn from one Oscar-winning film.

Stock futures are little changed this morning after the market put an end to its losing streak.

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

After more than 60 years leading Berkshire Hathaway, Warren Buffett announced this morning that he will step down as chairman of the conglomerate. The legendary investor will become chairman emeritus and stay on Berkshire's board of directors, while his son Howard will succeed him as chairman.

"Father Time always wins," Buffett, 96, wrote in a letter to shareholders. "He has, however, been generous with me. He has given me the opportunity to see Berkshire reach a point where I am more confident than ever about what lies ahead."

Friday's announcement comes less than a year after Greg Abel replaced Buffett as Berkshire's CEO. But as CNBC's John Melloy notes, Buffett has since remained active in the conglomerate's business. Under Buffett's decades-long leadership, Berkshire posted a 19.7% compounded annual return to shareholders — almost double that of the S&P 500.

Fears about the safety of advanced artificial intelligence models have taken center stage this week, as more and more leaders from Silicon Valley to Washington, D.C. chime in on the regulation debate.

Here's the latest:

• Palantir CEO Alex Karp became the latest executive to weigh in on calls for AI regulation, telling CNBC he believes there should be "reasonable guidelines." He also said AI firms should be nationalized due to the "unlimited risks" and liabilities of their technology.
• Later on Thursday, Anthropic followed up on its CEO's calls for an industry slowdown by sharing three metrics it said could help AI companies monitor the pace of development.
• Despite urgent calls from AI leaders for more regulation, the House adjourned until after the midterm elections, all but guaranteeing no action on the issue until November. Meanwhile in the Senate, a bipartisan bill aimed at capping utility price hikes related to data centers hit a roadblock.
• The AI regulation debate doesn't appear to be hampering demand. Nvidia CEO Jensen Huang said Thursday that his company's chip sales will double next year.
• Don't miss Mustafa Suleyman, CEO of Microsoft AI, on CNBC's "Squawk Box" at 8:45 a.m. ET. Watch live on CNBC or CNBC+.

Stocks rallied back to life yesterday, snapping the major averages' three-day losing streaks. Falling Treasury yields and crude oil prices helped lift stocks higher in Thursday's session.

Oil prices pulled back yesterday after Saudi Arabia reportedly offered more crude supplies following the closure of its key pipeline. Both Brent crude futures and U.S. West Texas Intermediate futures remain above $100 a barrel. The commodities team at JPMorgan said in a note yesterday that it is giving up on trying to predict how and when the Iran war will end now that its predicted redlines have been crossed.

Despite yesterday's recovery, the S&P 500 is still on track to finish the week in the red. Follow live market updates here.

The 2027 model year is going to be another one defined by "truck wars." This time around, the emphasis will be on V-8 engines.

General Motors this week unveiled its improved gas-powered engines and class-exclusive diesel option. Ford also updated its engine offerings, while Stellantis' Ram announced a return to its Hemi V-8 engine.

As CNBC's Michael Wayland writes, there's a lot at stake for automakers when it comes to winning buyers of full-size trucks. Sales of the vehicles tend to pay the companies' bills and provide them with the capital to invest in emerging markets or technologies.

The walls are coming down in one area of retail — at least in consumers' minds. A new study shows that consumers now view beauty, health and wellness as one large category rather than three smaller ones.

The AlixPartners-led study also found that 40% of consumers want traditional beauty companies to expand their product offerings. But companies aren't necessarily on the same page: 42% of executives said they want their firms to stick to what they currently do.

"What we found in the data is a consumer is just as likely to trade off a night cream for another night cream as a night cream for a personal trainer," Lindy Firstenberg, co-lead of the company's beauty, health and wellness practice, told CNBC's Laya Neelakandan. "Anything in beauty, health and wellness is within the consideration set."

Here are some stories you might have missed this week:

• Will AI really destroy humanity? Pioneers who created the tech weigh in
• Consumers hit by one-two punch of oil and rates from Iran war. The estimated bill is $1,700 per household
• 'Hostile act': Trump threatens EU with tariffs over Canada associate membership proposal
• Netflix content chief Bela Bajaria defines event strategy as streamer eyes more live sports
• As Republicans tout Trump's 'big beautiful bill,' here's who the tax breaks benefited most
• Your AI interviewer will see you now: How job seekers should navigate the new hiring tech

— CNBC's Zev Fima, John Melloy, Samantha Subin, Ashley Capoot, Kif Leswing, Garrett Downs, Justin Papp, Sean Conlon, Spencer Kimball, Michael Wayland, Tanaya Macheel, Liz Napolitano and Laya Neelakandan contributed to this report.

Josephine Rozzelle edited this edition.