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Greetings N2K reader!

Happy Holidays, my Chedd-friends! I’ll be back on Friday after you’ve eaten your bodyweight in Christmas ham. But first, this week’s world-famous 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 today (Christmas Eve!) for consideration by your Cheddar peers!

—Matt Davis, Need2Know Chedditor

News You Need2Know

• Consumers power economic growth to highest level i …

• Holiday drivers catch a break as gas prices hit mu …

• FDA greenlights first GLP-1 weight-loss pill

• Alphabet invests another $4.75B in the AI race

• From the Great Resignation to job hugging

• Poll of the day: 360-degree reindeer feedback

• Poll results: At least 45 people thought 60 Minute …

What’s the stock market up to, eh?

$SPX ( ▲ 0.46% ) $DJI ( ▲ 0.16% ) $NDX ( ▲ 0.57% )

Companies mentioned in today’s newsletter

$NVO ( ▲ 7.3% )  $GOOG ( ▲ 1.4% )  $TSLA ( ▼ 0.65% )  

Consumers power economic growth to highest level in two years

Despite recent manufacturing challenges and a federal shutdown, the U.S. economy surged in the third quarter of 2025. I don’t really understand it either, but it seems people’s consumer spending surged despite a bunch of signs they should probably be saving their pennies for a possible, you know…r-word (Ravioli? Renovations? Ratatouille? Razzamatazz? Rhubarb?— ed).

Here’s some numbers:

Real gross domestic product (GDP) rose at a robust 4.3% annual rate, according to a delayed Commerce Department report released Tuesday. This figure — the highest in two years — surpassed the 3.2% growth forecasted by economists.

The growth was largely fueled by a 3.5% spike in consumer spending, particularly on healthcare, services, and recreational vehicles. Additionally, a decline in imports and a surge in exports contributed 1.59% to the headline figure. Economists remain cautious about whether this momentum will persist through the fourth quarter, particularly as business investment figures and intellectual property investments were way down. Inflation was also up slightly.

Aditya Bhave, economist at BofA Securities, noted the rarity of these figures: "This is a very, very impressive GDP report,” he told the Wall Street Journal. Paul Ashworth, chief North America economist at Capital Economics, warned of a potential cooldown: "The economy maintains considerable momentum. That said, the shutdown could trigger a slowdown in the fourth quarter to nearer 2% annualized,” he said.

It’ll please you to know, I’m sure, that most Americans are carrying record levels of credit card debt to finance all this spending…because it’s patriotic to do so.

Song of the Day: Olivia Dean, ‘Man I Need’

Here’s a bouncy, jazz-infused, confident neo-soul anthem about demanding healthy love. It captures the fun, flirty feeling of knowing your worth in a relationship — just like this newsletter!

Holiday drivers catch a break as gas prices hit multiyear lows

Too bad if you bought a Tesla $TSLA ( ▼ 0.65% ) because holiday travelers are enjoying some much-needed savings at the pump this season, as gas prices in the U.S. hit their lowest levels since 2021. For most of December, the average price for unleaded gasoline remained below $3 per gallon, marking the cheapest holiday season for drivers in nearly three years.

It’s a good thing because, according to the Consumer Price Index (CPI) report released by the Bureau of Labor Statistics (BLS) on December 18, almost everything else got a lot more expensive this year:

Still, it’ll be cheaper to drive your car…as long as you don’t also want to also insure it!

AAA reports that a record-breaking 122 million Americans are expected to travel over the holiday period, with nearly 110 million of them taking road trips. 

Fuel prices are down approximately 43% from mid-2022 highs near $5 a gallon, a result of post-pandemic inflationary spikes. Gas prices vary significantly by region. Hawaii and California recorded averages over $4 per gallon as of Monday, while states like Oklahoma saw prices dip below $2.30. This, obviously, is all the reason you’d need to move from Hawaii to Oklahoma, in addition to their championship-winning NBA team. Tell ‘em, Shai Gorgeous-Alexander…

Quote of the Day

FDA greenlights first GLP-1 weight-loss pill

The U.S. Food and Drug Administration has approved the first-ever GLP-1 pill for obesity from pharmaceutical giant Novo Nordisk $NVO ( ▲ 7.3% ) . Known for its popular weight-loss injection Wegovy, Novo is now bringing the same active ingredient, semaglutide, into an oral form.

“What we’ve learned through years of research is that having an oral option really kind of opens up, activates, and motivates different segments to seek treatment,” said Dave Moore with Novo Nordisk's executive vice president of U.S. operations.

The compay plans to launch the pill in January 2026 at a starting price of $149 per month for the lowest 1.5 mg dose. The approval also includes the use of the pill to reduce major cardiovascular risks in patients with obesity and existing heart conditions.

“Novo will likely benefit from first-mover advantage,” said BMO Capital Markets analyst Evan Seigerman, noting that Novo Nordisk gains an edge over competitors like Eli Lilly, who are also racing to release their own obesity pills.

Should you check your 401(k) today?

👍️ 

Yes. Dasher, Dancer, Prancer, Vixen, Comet, Cupid, Donner, Blitzen, and Rudolph would all deem it appropriate. 🦌🦌🦌🦌🦌🦌🦌🦌🦌

Alphabet invests another $4.75B in the AI race

Google’s parent company, Alphabet $GOOGL ( ▲ 1.48% ) , is buying Intersect — a data center and energy infrastructure company — for $4.75 billion in cash, plus the assumption of debt. The acquisition comes as Alphabet aims to address intensifying competition in the artificial intelligence space, particularly against rivals like OpenAI.

“Intersect will help us expand capacity, operate more nimbly in building new power generation in lockstep with new data center load, and reimagine energy solutions to drive U.S. innovation and leadership,” Sundar Pichai, CEO of Google and Alphabet, said in a statement.

While Intersect will continue to operate independently, the acquisition will enable Alphabet to accelerate data center construction and power generation capacity. This effort is vital as AI technologies demand massive infrastructure for computing and energy. OpenAI, for instance, has reportedly committed over $1.4 trillion in infrastructure investments to support its AI advancements.

From the Great Resignation to job hugging

My favorite seasonal story so far was Dec. 17’s Wall Street Journal piece, “What to Do if You Suspect You’re About to Be Laid Off This Holiday Season,” for its sheer lack of sentimentality. The quick version? You’re in trouble either way, so do your best not to go out in a blaze of glory at the holiday party because it can impact the quality of your “exit package.” On the other hand…a blaze of glory at the holiday party sounds pretty fun, right?

The main advice was to pay attention to "the vibes": Trust your gut if office culture shifts, such as milestones going unacknowledged or suddenly being sidelined/micromanaged after a period of success. Likewise, keep a "Yay" folder: Maintain a digital file of client praise and reached goals to make updating your resume easier and to boost your confidence during a job search. Also, try to save three full months of expenses and prepare to negotiate severance. Consider hiring a lawyer to review the contract to ensure you aren't leaving benefits on the table.

Sooooo. The U.S. labor market is currently characterized by stagnation, a sharp contrast to the high-turnover era of the "Great Resignation." According to Nicole Bachaud, a labor economist at Zip Recruiter, the current market is "largely frozen in place," leading to the new phenomenon she calls "job hugging."

This "low hire, low fire" environment sees employees "staying put in their roles longer than they would have otherwise given the uncertainty that exists when it comes to finding a new job." This widespread uncertainty stems from several factors, with Bachaud citing "policies like tariffs and the impact that those have on consumer spending and inflation, [and] geopolitical tensions."

Despite the economic slowdown, she notes that AI and automation are not the primary drivers of job stagnation. Bachaud said: "There's very little evidence that AI and automation are really having a widespread impact on the labor market at this point. Really what we're seeing is an increase in productivity."

I could be wrong because I think the “increase in productivity” is because everyone is using AI to do their jobs without telling their bosses. But whatever. Job hugging!

Poll of the day: 360-degree reindeer feedback

Poll results: At least 45 people thought 60 Minutes did the right thing over the weekend…

We asked: “Do you think CBS should have pulled a 60 minutes story that was critical of the administration because the administration declined to comment for it?”

You answered:

⬜️⬜️⬜️⬜️⬜️⬜️ Oh yes, that sounds like a defensible decision, and I have more admiration for CBS as a result. That's journalism! (45)

🟩🟩🟩🟩🟩🟩 Are you ____ING KIDDING ME? (728)

773 Votes via @beehiiv polls

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