Economic growth, chip tariff delays, new S&P 500 records and more in Morning Squawk

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Here are five important things investors need to know to start their trading day.

The U.S. economy expanded faster than economists expected, the Commerce Department said in a delayed government shutdown report.

Here’s what you need to know:

According to initial figures, the US economy grew by 4.3% in the third quarter. Consumers appear resilient, with spending expanding 3.5% in the third quarter after increasing 2.5% in the second quarter. The Commerce Department’s first forecast for summer economic growth comes after the Consumer Sentiment Report showed more pessimism about the economy. Holiday retail spending rose 4.2% this season, led by e-commerce and electronics, according to preliminary figures. visa Report. Meanwhile, 37% of Americans have holiday debt this year, averaging $1,223, up from $1,181 last year, according to LendingTree. The GDP report was delayed by about two months due to the government shutdown, but it was enough to warn investors that the Fed is unlikely to cut interest rates in early 2026. Follow us here for live market updates.

Stock futures and Treasury yields were little changed as of Wednesday morning. S&P500 The new record set aside investors’ fears that stronger-than-expected GDP growth would dampen the Fed’s interest rate cut plans. Things like tech stocks alphabet, Nvidia, broadcom and Amazon It excited the market.

Precious metals continued to shine and continued their record rally. On the other side of the pond, blood pressure Oil giant Castrol has agreed to sell a 65% stake in its lubricants business to Stonepeak for $6 billion, months after it sought a buyer for the division.

U.S. stock markets will close at 1 p.m. ET for Christmas Eve, while bond markets are scheduled to close at 2 p.m.

The Trump administration has announced that it will begin garnishing paychecks for student loan defaulters starting in early January. It will be the first time student borrowers’ paychecks are in jeopardy since collections were suspended at the start of the coronavirus pandemic.

About 1,000 student loan defaulters are expected to receive pay garnishment notices starting the week of Jan. 7, a Department of Education spokesperson said. The Department of Education announced earlier this year that more than 5 million student loan borrowers are currently in default.

The Trump administration said in a Federal Register filing that the United States plans to increase tariffs on semiconductor imports from China in June 2027. Until then, initial tariffs on semiconductor imports from China will be zero for 18 months, according to a filing by the U.S. Trade Representative.

In an investigation launched a year ago, the agency said China engaged in unfair trade practices in the industry. The decision to postpone new tariffs for at least 18 months signals the Trump administration’s efforts to defuse trade hostilities between the United States and China.

enterprise software giant ServiceNow will acquire cybersecurity startup Armis in a cash deal valued at $7.75 billion as part of its plan to strengthen its cybersecurity capabilities in the age of artificial intelligence.

“ServiceNow will have the only AI control tower that drives workflows, actions and business outcomes across all of these environments,” CEO Bill McDermott said on CNBC’s “Squawk on the Street.”

Self-driving even in the dark? We’re getting there. Days after its self-driving car service was temporarily suspended due to the San Francisco power outage, Alphabet Inc.’s Waymo said it will update its fleet to better handle future power outages.

—CNBC’s Pia Singh, Annie Nova, Jessica Dickler, Luke Fountain, Samantha Subin, Kai Nicol-Schwarz, Jeff Cox, Fred Imbert, Kif Leswing and Ari Levy contributed to this report. Melody Warner edited this version.