Stock market's sell-off, foreclosures jump, new IRS guidelines and more in Morning Squawk

In a turbulent turn of events, the stock market experienced its most significant decline in over a month, with all three major indexes suffering considerable losses. Investors were shaken as the anticipated artificial intelligence boom stumbled, overshadowed by pressing economic policy concerns amidst the federal government's reopening. Recent earnings reports reveal a trend among higher-income consumers seeking discounts, while younger shoppers are tightening their budgets. Although companies like Coach and Swiss shoemaker On reported growth across various consumer segments, the overall consumer pullback suggests that the upcoming holiday retail season may face challenges. Investors will be closely watching next week's earnings from major retailers, including Walmart, Target, Gap, and Home Depot, for further insights. A concerning economic indicator emerged yesterday, as new foreclosure starts in October surged 20% from the prior year. This increase, highlighted by CNBC's Diana Olick, may signal vulnerabilities in a housing market that has remained tight since the pandemic. In labor news, Boeing defense workers reached a crucial milestone by approving a new contract, effectively ending the union's first strike since 1996. This strike, which extended over three months, had significantly delayed the production of Boeing's F-15 fighter jets. The approved agreement features enhanced upfront bonuses and a staggering 24% wage increase spread over five years, addressing employee concerns that previous proposals had overlooked. Meanwhile, the Starbucks barista strike commenced yesterday in numerous cities, coinciding with the traditionally high-sales Red Cup Day for the coffee giant. On the regulatory front, the IRS unveiled its 2026 guidelines for various savings programs, raising the employee deferral limit for 401(k) plans by $1,000 to $24,500. Additionally, the caps for individual retirement accounts and Roth IRAs each rose by $500 to $7,500. The agency also increased catch-up contribution limits for 401(k)s and adjusted income thresholds for Roth IRA contributions. At CNBC's Delivering Alpha conference last night, market experts shared their perspectives on current trends. Mary Callahan Erdoes, CEO of JPMorgan Asset and Wealth Management, emphasized viewing AI as an opportunity rather than a crisis, dismissing fears of an AI bubble as unfounded. Conversely, Philippe Laffont, founder of Coatue Management, offered a more pessimistic view on the initial public offering market, describing it as "completely broken" and lamenting the scarcity of IPOs compared to previous decades. As the week unfolds, investors and analysts alike will be keenly observing these developments, anticipating the implications for the market moving forward.