Economy grows, chip tariff delay, new S&P 500 record and more in Morning Squawk

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

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

Here’s what to know:

• The U.S. economy grew 4.3% in the third quarter, according to an initial reading.
• Consumers appear resilient, as spending expanded 3.5% in the third quarter after rising 2.5% in the second quarter.
• The Commerce Department’s initial read of economic growth over the summer comes after a consumer sentiment report shows more pessimism about the economy.
• Holiday retail spending rose 4.2% this season, driven by e-commerce and electronics, according to a preliminary Visa report. Meanwhile, 37% of Americans racked up holiday debt this year, at an average of $1,223 — up from $1,181 last year, LendingTree said.
• The GDP report was delayed almost two months because of the government shutdown and was enough to alarm investors into thinking that the Fed is less likely to lower interest rates in early 2026.
• Follow live market updates here.

Stock futures and Treasury yields were little changed Wednesday morning after the S&P 500 hit another record as investors shook off concerns that stronger-than-expected GDP growth would chill the Fed’s plans to lower interest rates. Tech stocks like Alphabet, Nvidia, Broadcom and Amazon buoyed the market.

Precious metals held onto their luster, continuing a record rally. Across the pond, BP agreed to sell a 65% stake in its lubricants business Castrol to Stonepeak for $6 billion, months after the oil giant sought a buyer for the unit.

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

The Trump administration said it will start garnishing the wages of student loan borrowers in default in early January. It would mark the first time student borrowers’ paychecks have been at risk since the beginning of the Covid pandemic, when collections were halted.

Starting the week of Jan. 7, the Education Department expects around 1,000 defaulted student loan borrowers to receive notices of administrative wage garnishment, a spokesperson said. More than 5 million student loan borrowers are currently in default, the Education Department said earlier this year.

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

The agency said in an investigation that started a year ago that China is engaging in unfair trade practices in the industry. The decision to delay new tariffs for at least 18 months signals that the Trump administration is seeking to cool any trade hostilities between the U.S. and China.

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

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

Self-driving in the dark? We’re getting there. Alphabet-owned Waymo said it’s updating its fleet so its vehicles are better prepared to respond during future outages, days after a blackout in San Francisco caused Waymo to pause its driverless car service.

— 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. Melodie Warner edited this edition.