U.S. Economy Grows 4.3% in Q3: CNBC's Morning Squawk News (2026)

Here's a recap of the key financial news you need to know to start your trading day, including economic growth, chip tariff delays, new S&P 500 records, and more, as featured in CNBC's Morning Squawk newsletter:

1. Economic Growth and Resilience: The U.S. economy expanded more than expected in the third quarter, growing 4.3%. This resilience in consumer spending, which rose 3.5% after a 2.5% increase in the second quarter, suggests a strong economic outlook. However, the Commerce Department's initial read comes after a consumer sentiment report showed more pessimism about the economy.

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2. Market Calm Amid Record S&P 500: Stock futures and Treasury yields remained stable after the S&P 500 hit another record high. Tech stocks like Alphabet, Nvidia, Broadcom, and Amazon supported the market. Precious metals continued their record rally, with gold hitting a new peak due to safe-haven demand.

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3. Student Loan Garnishment: The Trump administration plans to start garnishing the wages of student loan borrowers in default in early January, marking the first time since the Covid pandemic that student borrowers' paychecks are at risk. The Education Department expects around 1,000 defaulted borrowers to receive notices of administrative wage garnishment.

4. China Chip Tariff Delay: The U.S. has delayed increasing tariffs on Chinese semiconductor imports until June 2027, according to a Federal Register filing. This decision signals a cooling of trade hostilities between the U.S. and China, as the Trump administration investigates unfair trade practices in the semiconductor industry.

5. ServiceNow's Cybersecurity Acquisition: Enterprise software giant ServiceNow will acquire cybersecurity startup Armis in a cash deal valued at $7.75 billion. This acquisition aims to boost ServiceNow's cybersecurity capabilities in the age of artificial intelligence, as CEO Bill McDermott highlighted the potential for an AI control tower to drive workflow and business outcomes.