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Greetings N2K reader!

Congratulations for making it through the longest night of the year! (Assuming you did make it through. If not, well, uh, sorry.) Joan Benson won last week’s world famous news haiku competition™ about weed stocks soaring because the administration reclassified marijuana as a Schedule I drug:

And here’s how the other finalists compared:

🟨🟨⬜️⬜️⬜️⬜️ Cannabis for health | And wellness? Imagine that. The ancients were right. ~ Adrienne Baumann (65)

🟩🟩🟩🟩🟩🟩 If we all are high, maybe we’ll believe the lies. Light up, everyone ~ Joan Benson (166)

🟨🟨⬜️⬜️⬜️⬜️ Things are pretty dope. Regulations eased on weed. Hey pot! Meet kettle. ~ Erika Ettin (61)

🟨🟨🟨⬜️⬜️⬜️ out from legal shadows | fun we once forbade is now | money to be made ~ Lionel Schnell (87)

🟨⬜️⬜️⬜️⬜️⬜️ Ballroom expansion | Space for White House cultivation | Trump's new investment ~ Jim Chumbley (44)

423 Votes via @beehiiv polls

“So proud to win on a subject so near and dear to my heart. Enjoyed all the fabulous entries,” Joan wrote me in an email on Friday, in response to her victory, the second in as many weeks! 🥇🥇

Here’s your celebratory gif, Joan!

This week’s news haiku competition is about how inflation came in well below expectations on Friday, sending markets back up after a choppy week. I believe you — yes, you, dear reader! — can craft an incredible haiku on the subject. Send me your entry — to our spiffy new email address, haiku at cheddar dot com — by noon ET Thursday for consideration by your Cheddar peers!

And now for something completely different, and yet somehow also familiar…

—Matt Davis, Need2Know Chedditor

News You Need2Know

• Inflation wasn’t as bad as we thought, so stocks a …

• The tech gifts everyone is fighting over this Xmas

• Buy now or wait? Ask a real estate CEO!

• Trump administration reviews Nvidia AI chip sales …

• Spend smarter, not harder, on last-minute holiday …

• Poll of the day: ‘Tis the season!

What’s the stock market up to, eh?

$SPX ( ▲ 0.88% ) $DJI ( ▲ 0.38% ) $NDX ( ▲ 1.31% )

Companies mentioned in today’s newsletter

$MU ( ▲ 6.99% )  $NVDA ( ▲ 3.93% )  $ORCL ( ▲ 6.63% )  $AVGO ( ▲ 3.18% )  $DJT ( ▲ 8.28% )

Inflation wasn’t as bad as we thought, so stocks are up 📈

Usually when something is surprisingly softer than expected, it’s bad news, at least in my house. [example deleted] But not for America when it comes to inflation!

Wall Street rallied at the end of last week following a surprising inflation update that came in [checks notes] softer than expected, fueling optimism about the Federal Reserve's ability to slash interest rates next year. The S&P 500 $SPX ( ▲ 0.88% ) rose 0.8%, breaking a four-day losing streak.

October’s inflation stood at 2.7%, still above the Fed’s 2% target, but the slower pace provided relief to investors anticipating rate cuts. Analysts predict lower interest rates could boost economic activity and lift stock prices.

Tech stocks benefited from Micron Technology $MU ( ▲ 6.99% ) , which soared 10.2% after exceeding analysts’ estimates on revenue and profit. CEO Sanjay Mehrotra highlighted the company’s position as an “AI enabler” (which makes his company sounds a lot like my cousin) and shared forecasts that “blew past analyst expectations,” offering reassurance amid recent weakness in AI-linked stocks like Nvidia $NVDA ( ▲ 3.93% ) , Oracle $ORCL ( ▲ 6.63% ) and Broadcom $AVGO ( ▲ 3.18% ) .

Elsewhere, Trump Media & Technology Group $DJT ( ▲ 8.28% ) announced a nuclear-fusion merger with privately traded TAE Technologies. Shares jumped 41.9%, trimming earlier losses.

Song of the Day: Rin, Esha Tewari, ‘Winter’s Excuse’

Time for some midwest emo indie-folk, methinks!

The tech gifts everyone is fighting over this Xmas

Well, well, well. If you’re like some people we know, you’ve put off your holiday shopping until the very last minute. Luckily, Tom’s Guide managing editor Kate “Is It December Already?” Kozuch stopped by Cheddar to save you with a round-up of the hottest gadgets of the year.

First up, the console everyone wants: the Nintendo Switch 2 for $450. It’s got a bigger screen, magnetic Joy-Cons, and exclusive titles like “Donkey Kong Bonanza.” Kate’s pro tip? "You actually can very carefully unbox your Switch 2, get it set up... wrap it up real carefully. No one has to know you just won Christmas morning." Cheating? No, winning!

For the perpetually stressed, Kate brought the Percussion Eye Massager for just $75. Yes, she admits, "It kind of looks like a creepy high-tech face mask," but it has heating, cooling, and will block out the sound of a crying baby on the plane.

If you’re working out too much, grab the new TheraGun Mini Plus for $280—it heats up, like an Easy Bake Oven or nuclear fusion! And for the perfect host gift, there’s the app-controlled Pura Smart Scent Diffuser, starting at a mere $48.

Don’t forget the Fujifilm Instax Wide 400, which is an instant camera for $175, "It's for those instant memories, something tangible that you could walk away from your holiday parties from and then take on vacation if you're heading out of town after,” Kate said. And you won’t need to spend the whole time on your phone!

Kate noted the biggest trend is "value" — and she means value, not price! It’s about, as she says, "How much are you getting out of this? How many of my family members can use this?" Look, just buy the Nintendo Switch. I think that’s what she means.

Quote of the Day

Buy now or wait? Ask a real estate CEO!

According to Mike Miedler, president and CEO of Century 21 Real Estate, the current housing market offers a "Santa Claus rally," driven by lower mortgage rates and increased inventory. He notes that rates have dropped to the lowest level in two years, "about 50 basis points lower than it was a year ago today," which is helping affordability and driving a "surge in mortgage applications."

For buyers, the market is shifting. Inventory is up 15% year-over-year, leading to more "time on market," now around 125 days. This change gives buyers "more negotiating power, because 40% of the homes that come to market are taking a price cut."

Miedler cautions against trying to time the market, suggesting that the "magic number" for rates, which "is when you hit something in the five handle," might bring a surge of buyers that could drive up home prices.

Ultimately, affordability is tied to the supply issue, which must be addressed at the local level, despite national efforts. While technology has made buyers more educated, real estate agents are being used more than ever, with buyers and sellers using them at an "all-time high, somewhere in the 90% range," reinforcing the value of a "trusted advisor relationship."

Should you check your 401(k) today?

👍️ 

Yes. Things are looking up!

Trump administration reviews Nvidia AI chip sales to China

The U.S. government has initiated a review into potential sales of Nvidia’s $NVDA ( ▲ 3.93% ) advanced H200 AI chips to China, aiming to maintain American tech dominance while addressing national security concerns over China’s military and AI advancements.

While President Trump emphasized that such sales could “help keep U.S. firms ahead of Chinese chipmakers by cutting demand for Chinese chips” and included a 25% export fee for the U.S., the decision has been met with significant backlash. Chris McGuire, a former White House National Security Council official, expressed stark opposition: “Exporting large numbers of the chips to China would be a significant strategic mistake,” he told Reuters. McGuire warned that these chips are critical to maintaining the AI balance of power. "I cannot possibly fathom how the departments of Commerce, State, Energy, and Defense could certify that exporting these chips to China is in the U.S. national security interest," he added, underscoring concerns of eroding the U.S. technological advantage.

The move represents a noticeable shift in Trump’s approach from his first term, during which he imposed strict restrictions on technology sharing with China, citing intellectual property and military concerns.

Spend smarter, not harder, on last-minute holiday shopping

The holiday season often comes with joy, but also the risk of let’s say…overspending. We spoke with shopping expert Trae Bodge (pictured above) from TrueTrae.com about how to keep your budget on track and avoid a financial hangover in the new year. One of the biggest culprits of budget derailment, Bodge notes, is the “one for you, one for me approach” many shoppers take of “popping something into the cart for ourselves" whenever we buy a gift for someone else.

Her simple solution is: "as you make your shopping list, add yourself to your list with a spending cap and that's all you can spend so you can stay on track there."

Another key is organization, which if you’re doing this on December 22 is probably not your strong suit. But anyway! Start by creating a detailed list in your notes app that includes recipients, gift ideas, and a budget for each, she suggests. If you're struggling to find deals, Bodge suggests thinking outside the box, such as buying refurbished tech from sites like Back Market.

For those relying on credit, she offers a cautionary note on Buy Now, Pay Later (BNPL). While it can be helpful for a big purchase, she advises: "If you're feeling like you need to do a lot of purchases that way, it's time to make a change in your spending habits." By being mindful and organized, you can spread joy without spreading debt this holiday season. But if you’re buying me a gift, I reckon you should probably just go into debt. I’d appreciate it.

Poll of the day: ‘Tis the season!

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