The fed futures priced that out to july instead of june. If you look at treasury yields, there was a 10basis point jump in the tenyear yield. 4. 27. The twoyear yield at 4. 68. Looking at the hotterthan expected Producer Prices for two months whand hotter consumer prices, it makes you won beder t you see with inflation. The price of bitcoin as we talked about that before we came on it never closes. You never know to base the change. That change doesnt tell you what is happening. Here is the range from yesterday. I can look at coinbase where i watch it. The high was 73,418. We say that. The low was 65,500 i did some math. Thats 8,000 on a 73,000 stock. More than 10 . If you decide you want to tread into this, be ready to buy at 73 and wake up the next morning to see it at 65. The weird thing about it, gold and bitcoin is supposed to go up with inflation. When inflation is running, it means the fed will not cut. They will not print. Liquidity play. They will not print and everybody wantsthe pivot and the easing cycle. June . Fed futures priced out to july yesterday. We go back to the animal spirits is the economy it also ran up. It ran up with the supply and demand. That is an idiosyncratic issue. And when people think the economy is great and super excited . Nothing to do with the economy. I think it has a lot to do with the biden economy in terms of printing money. I dont think it has anything to do i disagree. It is utterly connected to the nasdaq and to a risk on. It goes up when rates come down. Rates do not come down if the economy is strong. Rates come down if the economy he is weakening or inflation is easing. I think copper prices were at an 11month high. That is an indication of global manufacturing. The nasdaq is dying for rates to come down. Any riskon the nasdaq 100 was down as well and now on track for a second week in a row of losses. Thats the first time thats happened since october. Any risk asset. What is better . A red hot economy where you know rates are going up and they are not going to cut or an economy where it looks like inflation will moderate and rates will be able to be cut . That iswhat spurs the animal spirit. Its both. Its like everything we talk about. Great jobs number. People are employed. Why the initial kneejerk reaction may have been why the stocks were up, too. It took until later in the day before it turned around. Rates back from 4 to 4. 30 . I dont think were cutting in june. Jamie dimon. They shouldnt cut because that could cause can i ask a question . Yeah. The Biden Administration. Back in the trump administration, did you think the economy was terrible because rates were so low . It was inflation. Thats the age old question. What causes rates . I understand that. I think it is very hard to say that was a great economy because rates were so low. You are saying the reason you have to bring rates low is the economy is terrible. The best thing in the world is good growth with no inflation. It is all about inflation. You went to 40year highs on inflation. I know the inflation story. 40year high on inflation is why we went up 500 basis points in rates. You go into a cycle the like that and bitcoin went intfrom 65,000. We are trying to get back to normal. All of the numbers we read are skewed. Real wages are rising. Almost 9 . Right now, real wages have dropped 6 in the biden economy. It is that simple. No bump from the state of the union. Zero. 37 . I have seen the polls. When you go to the supermarket, if you ever do, if your guy is out and you finally go to the supermarket, everything is 7. Everything. Cereal. I got sugar pops. You like those . Sugar pops . You still buy those . I buy honey nut cheerios. You believe 7 everything at the supermarket is somehow going to turn into 4 at the supermarket if donald trump is your president . We might close the border. We might there are other issues. There are a lot of usuaissue that might get better. Swing voters are unhappy with trump. The thunews alert from washington. Reporting that the u. S. Planning to award more than 6 billion to samsung to help expand the already planned 25 billion project in texas. The sources telling cnbc that the white house planning to extend funds to intel in the form of grants and loans from the chips act. The Commerce Department declined to comment on the report. Joe. Shares of adobe are lower. 448 a share beat estimate of 438. Revenue was higher. Revenue guidance was lower. Expressing concern over a. I. Competition and the openai video Generation Model which sparked fears to cut into the adobe Video Editing business. It will work with openai as it deploys its model. Wall street was not thrilled that kevin plank is returning as ceo. Evercore downgraded the stock saying planks return was a signal that the turn around strategy wasnt working and the Key Performance caterindicators deteriorating in the current quarter. Senators from both sides of the aisle rejects the tiktok divest or ban bill. Republican senator ted cruz said he was glad the house acted, but said the bill should be subject to a full amendment process. That process could tie up the bill for months and potentially kill it in an Election Year when lawmakers are busy campaigning and when they dont want to tick off the 170 million tiktok users here in the United States. In the meantime, the Chinese Government is signaling it wont allow a forced sale of tiktok. Bytedance is interpreting that as the government there prefers the app be banned in the United States rather than be sold. If they cant have it, no one can. Spacex conducted a third test flight of the rocket yesterday which was successful. The rocket flew further than previous tests. It lasted an hour before it broke up above the indian ocean. It did not splash down as intended. Spacex and nasa celebrating that flight as successful. Lyft and uber will cease operating in minneapolis after the Ride Hailing Services raise wages to 15. 57 an hour. Uber and lyft promised to push for statewide legislation to counter that city ordinance. Wow. They are saying forget it. We cant make it work gl. Fast food restaurants close down. Same thing. When when come back, nvidia helping the conference next week. We will tell you what is going to happen next. You see the nvidia shares there at 884. Later, we will talk to mark deamelio about the potential impact of tiktok on his business. Squawk box will be right back. Announcer this cnbc program is sponsored by baird. Visit bairddifference. Com. It should be called wiffle tennis. Pickle yeah, aw whoo these guys are intense. We got nothing to worry about. With e trade from Morgan Stanley, were ready for whatever gets served up. Dude, you gotta work on your trash talk. Id rather work on saving for retirement. Or college, since you like to get schooled. Thats a pretty good burn, right . Got him. Good game. Thanks for coming to our clinic, first ones free. Thanks for coming to our clinic, next. Next. Stop. We got it . No. Keep going. Aga. [ sigh ] next. Next. If you dont pick one. Oh, you have time. Am i keeping you from your job. Next. I dont even know where i am anymore. Stop. Do we finally have it . Lets go back to the beginning. Are you. Your electric future. Customized. The fullyelectric audi q4 etron. When i was your age, we never had anything like this. What . Wifi . Wifi that works all over the house, even the basement. The basement. So i can finally throw that party. And invite shannon barnes. Dream do come true. Xfinity gives you reliable wifi with walltowall coverage on all your devices, even when everyone is online. Maybe well even get married one day. I wonder what i will be doing . Probably still living here with mom and dad. Fast reliable speeds right where you need them. Thats walltowall wifi on the xfinity 10g network. Welcome back. Nvidia is set to kickoff the a. I. Conference on monday. Ahead of that, our next guest says she is seeing levels of speculative options trading tied to Semiconductor Stocks hitting levels never seen before. Many are positioning for that momentum to continue. She documents this in the piece frenzy over a. I. And nvidia turbo charges the Options Market. G gunjan is the writer. Gunjan, this is casinolike activity. What is taking place . Becky, one trader said this is the biggest casino in the world right now referring to nvidia options and semiconductor options. Over the next few days u , we h the nvidia conference and micron earnings and smci set to join the s p 500 after the market close today. The conference that nvidia is holding keeps coming up in c conversations with traders more than the Interest Rate decision. This is the thing that everyone keeps bringing up. I think people are on the edge of their seats to see how much higher can the a. I. Trade go . How much room is there to run . If you are looking at nvidia shares over the last six months, they doubled, but this week, they are down 7. 5 . I think people are starting to if h question if this is a straight trade. The path of nvidia has wide implications. I was looking at data and it moved in tandem 14 of the 19 sessions. What is interesting when you look under the hood, people have been positioning for the stock to keep going higher. What traders are telling me is the prices of trades that profit if nvidia kept soaring. Think 1,000 calls in shares which are surpassing the bearish trade that would profit if the stock fell. If you look at the stock, it is not telling the full story. There is more exuberance and activity under the surface. Sg the fed may not be front and center for the traders, but maybe it should be if you are questioning the rationale or thesis that the fed is cutting rates sooner than later. The hotter than expected Inflation Numbers have done a number on crypto prices. You can see it playing out in the tech stocks. That is the fascinating disconnect. It feels everyone has moved to the soft landing trade. Inflation is going to fall idea and not much can shake that, at least in the stock market so far. A lot of the fear this week has been concentrated on the bond market. A little bit of selloff in treasuries. Microsoft hit another high yesterday with the a. I. An annou announcement. Right now, that fear about decreased rate cuts is not seeping into the a. I. Trade and the s p 500. It is when you see stocks and bonds differentiate, people start to wonder who is right. Can that bifurcation continue and conventional wisdom suggests that the treasury market is smarter. The bond market is smarter. Who is the smart money . Nvidia speculators or the treasury traders . That is the big effortgest ques right now. We have the divergence happen this year. Stocks have kept rising. A. I. Trade has kept reaching new heights although we see a selloff in the treasury market. Next week with the nvidia conference is the the next big test. What do traders say they need to hear from nvidia on monday in order to make these trades make sense . This has become a story stock. I think a lot of people are watching the speech on monday with the keynote address and what does he say about the products or customer demand . The total Addressable Market . That is going to be the highlight for a lot of people. They are clinging to his every word. We have seen speculative frenzies in the past and everybody is trying to figure out where we are in the cycle because a frenzy doesnt mean it will be over any time soon. What do traders watch for . What i will say is we are seeing levels of speculation in options that we have never seen before. What does that mean . It tells you people are really, really excited about the a. I. Trade in particular. Most of it is concentrated in Semiconductor Stocks. Some people are looking to play catch up. Maybe they missed out on buying nvidia shares and they are turning to the speculative bets. The risky trades to profit to continue to rise in the stock. Options activities is surpassing from 2021. A hot trade. You hope you dont get burned by it. Exactly. Gunjan, thank you. Thank you. Coming up, the Senate Committee arguing the pros and cons of the fourday workweek. Its friday. We will bring you the highlights after the break. I would run on a sevenday workweek. Dont work for andrew. Being a changemaker means embracing uncertainty to deliver p performance. You have to start with curiosity. Be curious about the challenges in front of you. You have to have commitment to go the long haul to do that. It requires partnership to come up with creative solutions. Lastly, it requires agility to pivot enoueewh y nd. I am here because they revolutionized immunotherapy. I am here because they saw how cancer adapts to different oxygen levels and starved it. I am here because they switched off egfr gene mutation and stopped the growth of tumor cells. Theres a place thats making one advanced Cancer Discovery after another for 75 years. I am here. I am here. Because of danafarber. What we do here changes lives everywhere. I am here. Theyre waiting for you. Hey, do you have a second . Theyre all expecting more. More efficiency. More benefits. More growth. When you realize you can give your people everything, and more. Thank you very much. [applause] ask, now what . Heres what. You go with prudential to protect, empower and grow. With everything you need to deliver, you guessed it. More. One more thing. Whos your rock . Learn more at prudential. Com the future is not just going to happen. You have to make it. And if you want a successful business, all it takes is an idea, and now becomes the future. A future where you grew a dream into a reality. Its waiting for you. Mere minutes away. The future is nothing but power and its all yours. The all new godaddy airo. Get your Business Online in minutes with the power of ai. What is cirkul . Cirkul is the fuel you need to take flight. Cirkul is the energy that gets you to the next level. Cirkul is what you hope for when life tosses lemons your way. Cirkul, available at walmart and drinkcirkul. Com. Welcome back to squawk box. Bernie sanders arguing their case to reducing the federal workweek from 40 hours to 32 hours without a reduction in pay. Citing a. I. Which would allow workers to cut back on hours and spend more time with family and on hobbies. What do you say, folks . One of the issues we have to talk about is stress in this country. The fact that so many people are going to work exhausted physi physically and mentally. The fact we have not changed the fair labor standards act. This was 1940 we came up with the 40hour workweek. Who will deny the economy hasnt changed over that period of time . Uaw president shawn fain spoke in favor of the bill saying many employees are working for less pay and cant retire until later in life. Republican lawmakers expressed opposition to the bill. Senator bill cassidy said it would harm Small Businesses which would lead to layoffs if businesses cannot keep productivity up. I would not know where to start on this. I wouldnt want to live in a World WithoutBernie Sanders. You know, from the land of ben jerrys. I love it. It is silly. You love the work. You know i do like a sevenday working week. Five days . In this country, we try to have a really i was going to say strong economy. For a lot of americans 35 hours. For a lot of americans, if we had a 40hour workweek. We are at a 35hour workweek for decades. They take an hour lunch break. When i started working, it was a 35hour workweek. It is funny. The idea of the fourday workweek in the white collar land because they are working from home and taking more time. The other truth is, folks working on the u. P. S. Truck, those folks are working 12 hours a day. I get mail on sundays. U. S. Mail. I will say there is a separation. This is more of the inequality argument that comes in if you are able to fa nagel a fourday workweek. That is is when minimum wage is coming into play. You get the same amount of money, but work 3h2 hours. It is true. Remarkable productivity and advances. We hope it makes us more productive. The advances in a. I. Have been seen as shareholder gains. It will come back. We figured out the sewing machine. There have always been great advances. This is transformative. Bernie, what i love about bernie, any night of the week, you can see him on the late night shows. Never see ted cruz on one of the late night shows. You see bernie. They are all the same. They are all like minded. He is a socialist. He vacationed in moscow on his honeymoon. Hes crazy. Hes crazy. What he is describing is walle. I suspect he is turning out to be closer to right than wrong. We will know in 30 years. He is a little early. Ill give him credit and say hes early. I will buy you dinner in 30 years. I know. That is the direction of travel. One of the things he has done over the years, whether you agree or disagree, he does this early anchoring. He puts out these stakes about ideas. Ideas you and i think are crazy in the moment which has come true . Think of all of the Different Things we have what of bernies anchors has turned out to be right . Not one. What they do is move the midline. If you are talking about free student tuition or the idea of the wealth tax, all mof those ideas were from Bernie Sanders. Think about all of the people who are working at fast food joints around the country getting all sorts of benefits they never got 30 years ago. Because of bernie . He has changed that dialogue. Thats how i argue it. I would say that child labor laws put in long before he was born. We try to make work better. I wont tie anything to Bernie Sanders at this point, except, to me, he is funny. Im glad he is around. Remember the meme that went around after the inauguration with the mittens . The democrats screwed him over with biden. Oh, my god. It might be bernie. He can never win. Bernie sanders as president of the United States . Hes there stoay ridiculous things . Coming up, a read on the economy from david malpas. Announcer executive edge is sponsored by at t business. Next level moments need the next level network. Lets check. Says here it gets plenty of light. And this must be the ocean view . Of aruba . Huh. This listing is misleading. Well, when at t says we give businesses get our best deal, on the iphone 15 pro made with titanium. We mean it. Amazing. All my