Alphabet hits record highs, Burry's AI concerns, Ukraine peace plan and more in Morning Squawk

In the latest market update, shares of Nvidia and Alphabet have shown contrasting trends, with Alphabet stepping into the limelight of artificial intelligence. Investors are questioning whether the parent company of Google will take a lead role in AI, prompting Nvidia to reassure its stakeholders about its industry dominance. Yesterday marked a continued recovery in the stock market, led by the Dow Jones Industrial Average, which surged by over 660 points, or 1.4%. Market participants are increasingly fixated on the potential for an interest rate cut during the Federal Reserve’s upcoming December meeting. Current projections indicate an 84% chance of a rate decrease, a significant increase from approximately 50% just a week prior, according to the CME Group's FedWatch tool. The anticipation surrounding interest rates was further fueled by remarks from White House National Economic Council Director Kevin Hassett, who is seen as a proponent of lower rates and a leading candidate to succeed Fed Chair Jerome Powell. Treasury Secretary Scott Bessent also indicated a strong possibility that President Trump will announce the new Fed leader before Christmas. On the international front, Ukraine has expressed its willingness to advance negotiations on a U.S.-backed peace framework aimed at resolving its protracted conflict with Russia. President Trump commented that the parties are nearing a deal, noting only a few remaining disagreements. He has indicated plans to meet with both Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin once the agreement approaches finalization. Meanwhile, a Kremlin aide stated that Russia has yet to receive an updated draft of the deal. In the realm of AI investments, Michael Burry, known for predicting the 2008 housing market collapse, has emerged as a critical voice. After closing his hedge fund, Burry launched a blog to argue that the AI sector may be experiencing a speculative bubble. His views align with those of Phil Clifton, a former associate portfolio manager, who questions whether the costs associated with the rapid infrastructure expansion in AI are justified. Nvidia has countered Burry's claims with a private memo that directly addresses his concerns. In real estate news, homeowners are withdrawing their properties from the market at an unprecedented rate. Redfin reported that nearly 85,000 U.S. sellers removed their homes in September, marking the highest number for that month in eight years. Analysts suggest that declining home prices, weak buyer demand, and economic uncertainty are influencing these decisions, with around 15% of these delisted homes potentially selling at a loss. Additionally, the Conference Board reported a decline in its Consumer Confidence Index for November, reaching its lowest point since April, driven by concerns over employment prospects. As Thanksgiving approaches, President Trump continued the traditional White House turkey pardon, making headlines alongside a report comparing this year's holiday meal prices to last year's.