Good Wednesday morning. Welcome to Squawk on the street. I'm Sarah Eisen with Carl Kintania. We are live as always from post nine of the New York Stock Exchange. David Faber's on assignment. Coming up this hour, President Trump arriving in China early this morning with a key update to his guest list on the trip.

We've got the latest from Beijing in just a moment. Plus, big jumps for some AI stocks after a

cool down yesterday, including Cloudform Nebius, Chipmaker Wolfspeed. We're going to look at what's

driving the action ahead. And we will talk about the major change at the top of the FDA.

Look that that could mean for health care stocks, which have all been

under pressure this year. But first, Carl, we have to start with inflation because we got another

update this morning. PPI producer price inflation. This is what goes in at the wholesale level.

So it ultimately does factor into consumer prices. And it was hot, hot, hot. I mean,

the biggest gain since December 2020, a 6% surge from a

year ago. Yes, we expected a hot reading because of oil prices and energy prices, but it definitely

went farther than most economists were expecting. Even if you look at core, which is X food

and energy, which tries to strip out what's volatile,

we saw higher price. I mean, the month-over-month PPI core was about 1% compared to 0.3% consensus,

and it rose 5.2% year-over-year. So this is one that the Fed will not be able to ignore,

and it follows yesterday's consumer price inflation,

which was also higher than expected. And I know you've been talking about this, but I just wanted to

put it in chart form, which is, so CPI, inflation is blue, average hourly earnings, which is wages

are in orange. And what we saw in yesterday's report, which is really not great news, is that

for the first time since 2023, the blue line went above the orange line. In other words,

inflation outstripping wages. That's something, you know, I've been saying for the last few

months, really, that there's been so much progress on inflation, well, we're really starting

to go the other way. And the question is just how much of that is temporary. Yes, we've seen

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