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

Investors are waking up to a series of significant developments as the U.S. economy demonstrated stronger growth than anticipated, according to the latest report from the Commerce Department. This unexpected expansion has stirred conversations in the financial markets, particularly as the S&P 500 reached a new all-time high. On Wednesday morning, stock futures and Treasury yields remained relatively stable as investors absorbed this information, dismissing fears that robust GDP growth could impact the Federal Reserve's plans to reduce interest rates. Tech giants including Alphabet, Nvidia, Broadcom, and Amazon have been instrumental in bolstering market confidence. Meanwhile, precious metals continue to shine, maintaining a remarkable rally that has captured the attention of investors. In corporate news, BP has entered into an agreement to sell a 65% stake in its lubricants division, Castrol, to Stonepeak for a substantial $6 billion. This move comes after BP actively sought a buyer for this segment. As the holiday season approaches, U.S. stock markets will close early at 1 p.m. ET on Christmas Eve, while bond markets will wrap up trading by 2 p.m. In a notable policy shift, the Trump administration announced it will begin garnishing wages for student loan borrowers in default starting in early January. This marks a significant change as wage garnishments have been paused since the onset of the COVID-19 pandemic. The Education Department anticipates that around 1,000 borrowers will receive notices of wage garnishment beginning the week of January 7. In international trade news, the U.S. plans to implement tariffs on Chinese semiconductor imports by June 2027, although an initial zero tariff rate will be in place for the next 18 months. This decision stems from findings of unfair trade practices by China in the semiconductor industry, with the delay signifying an effort to ease tensions between the two nations. In the tech space, ServiceNow has announced its intention to acquire cybersecurity startup Armis for $7.75 billion in cash. This acquisition is part of ServiceNow's strategy to enhance its cybersecurity offerings in an increasingly AI-driven landscape. CEO Bill McDermott emphasized that this acquisition will enable the company to establish a unique AI control tower to drive business outcomes across various environments. Lastly, advancements in autonomous vehicle technology continue, as Waymo, owned by Alphabet, announced updates to its fleet following a recent power outage in San Francisco that temporarily halted its driverless car services. The company is committed to improving the resilience of its vehicles in the face of future challenges.