CNBC's Rick Santelli joins 'Squawk Box' to break down the latest economic data to cross the tape. The American economy grew at a 3% rate in the second quarter of 2025, a better-than-expected pace even as Trump’s tariffs hit.

Washington

The U.S. economy grew at a 3% annualized rate in the second quarter, according to advance estimates. This figure surpassed expectations of around 2.5% and marks the highest growth rate since the third quarter of the previous year. Consumer spending rose by 1.4%, aligning closely with estimates and representing an improvement over the previous quarter's weak performance.

Inflation indicators showed mixed results. The overall pricing index was at 2%, the lowest since the third quarter of the previous year, while the core personal consumption expenditure price index came in at 2.5%, slightly higher than anticipated. Interest rates saw a modest increase following the report, and market participants are awaiting further developments from the Federal Reserve and upcoming funding announcements.

U.S. economy grew at a 3% rate in Q2

Just a few seconds away from that advanced second quarter GDP number, futures are higher ahead of that, with the Dow futures up by about 25 points. S&P futures up by seven. The Nasdaq indicated up by just over 40 points. Rick Santelli is standing by at the CME in Chicago. And Rick, take it away. Yes, these are the advance, of course, so they will be modified. But we are expecting a number around two and a half percent. Last quarter, you do realize was down half a percent. That was weakest quarter since the first quarter of twenty two. And they're out up three percent, up three percent better than expected. That would be the highest level since the third quarter of twenty four when it was up three point one percent on the consumption side, up one point four, very close to estimates. Up one point four would be the best since the last quarter of twenty four. And I do want to point out, if you look at the consumption numbers for last quarter, up half of one percent, that is really weak. As a matter of fact, that goes in comps to the worst, darkest days of covid when it was down 30 percent. However, I wanted to know outside of covid. When was the last time we saw consumption that low? You're going back to June of twenty eleven. Just as a footnote on the pricing index side, less than expected. We're looking for a number over two percent. This number is at two percent. Two percent would be the lowest pricing index number. Going back to the third quarter of twenty four when it was one point nine percent. And finally, the core personal consumption expenditure price index. That's a quarter over quarter number expected to be around two point three comes in a little heavy. This one's a little heavy at two point five. Two point five would be the highest since last quarter of twenty four when it was two point six. So very good news all in all, especially considering that liberation. April 2nd falls in this quarter and it was definitely better than expected. Now, does that mean there can't be some payback in the quarters ahead? Possibly. But nobody ever knows what the quarters ahead are. That's called risk. Risk is in the markets no matter what. Uncertainty may be higher, but risk is always present. Interest rates have moved up a little bit. So we're up about a basis point and a half on a 10. We're up two basis points on a two year as we await the Fed meeting and the quarterly funding announcement, which may be moving markets more. And I don't have insight into those numbers, but I'm sure a great panel at CNBC will. John, Becky, I'm sorry, Joe, Becky, back to you.

U.S. President Donald Trump slapped a 50% tariff on most Brazilian goods to fight what he has called a "witch hunt" against former President Jair Bolsonaro, but softened the blow by excluding sectors such as aircraft, energy and orange juice from heavier levies.

Rio de Janeiro

Global Tariffs

Trump hits Brazil with tariffs, sanctions but key sectors excluded

Widespread damage from tsunami waves after one of the strongest earthquakes ever recorded appears to have been largely avoided. Experts say this event should be used to gauge disaster preparedness for a more serious situation in the future.

Okinawa

Tsunami damage less severe than feared after Russian earthquake

Prime Minister Mark Carney announced that Canada will recognize a Palestinian state later this year if the Palestinian Authority, which governs parts of the West Bank, meets certain conditions.

Ottawa

Middle East Conflict

Canada to recognize Palestinian state in September if conditions met

Australia said on Wednesday (July 30) it will add YouTube to sites covered by its world-first ban on social media for teenagers, reversing an earlier decision to exempt the Alphabet-owned video-sharing site and potentially setting up a legal challenge.

Canberra

Australia expands teen social media ban to YouTube

President Donald Trump said on Wednesday (July 30) the United States will impose a 25% tariff on goods imported from India, as well as an unspecified penalty for buying Russian weapons and oil, on Aug. 1.

Trump says U.S. to hit India with 25% tariff starting August 1

Mourners flooded the streets of Birmingham to celebrate the life of rock-and-roll legend Ozzy Osbourne during his funeral procession in the United Kingdom. Mark Savage, a music reporter at the BBC, a CBS News partner, joins with more details.

Birmingham

Ozzy Osbourne fans flood Birmingham streets to mourn late music icon

U.S. President Donald Trump told reporters before departing from Scotland that Jeffrey Epstein poached workers from his Mar-a-Lago spa. Trump mentioned Virginia Giuffre, one of Epstein's most vocal accusers, in his latest remarks.

Trump says Epstein 'stole' young women from Mar-a-Lago spa

Owdeh Hathaleen, a 31-year‑old Palestinian activist, teacher, and filmmaker behind the Oscar-winning documentary No Other Land, was shot dead by an Israeli settler near the village of Umm al‑Khair in the South Hebron Hills.

Jerusalem

Palestinian activist killed by Israeli settler in West Bank

A powerful magnitude 8.8 earthquake off Russia's Far Eastern Kamchatka Peninsula triggered tsunami waves of up to 16 feet nearby, and sparked evacuation orders in Japan, Hawaii and across the Pacific on Wednesday (July 30).

Hawaii

Tsunami reaches Hawaii after huge quake shakes Russia's Far East

The U.N. General Assembly brought high-level officials together to promote a two-state solution to the decades-old Israel-Palestinian conflict. Israel and the United States are boycotting the two-day meeting, co-chaired by the foreign ministers of France and Saudi Arabia

New York

Israel and U.S. boycott UN Summit for two-state solution

With numerous countries facing an Aug. 1 trade agreement deadline, officials in the Trump administration say China could get an extension while negotiations continue.

Trump officials suggest potential tariff truce with China

Police say the man who shot and killed four people in a New York City office building before he took his own life had a "documented mental health history." Mayor Eric Adams says he may have been targeting the National Football League (NFL).

Manhattan gunman had 'documented mental health history'

Jeffrey Epstein-associate Ghislaine Maxwell is offering to testify before Congress in exchange for concessions like full immunity. CBS News Department of Justice reporter Jake Rosen has more.

Ghislaine Maxwell offers to testify before Congress

Prime Minister Keir Starmer said on Tuesday (July 29) Britain was prepared to recognize a Palestinian state in September at the United Nations General Assembly unless Israel takes a number of steps to improve life for Palestinians.

London

UK to recognize Palestinian state unless Israel takes action

Russia launched overnight air strikes on over 70 Ukrainian cities, killing more than 20 people, according to President Zelenskyy. A pregnant woman died near a hospital in the southeast, while a prison strike killed at least 17.

Kyiv

Ukraine Invasion

Deadly Russian air raids hit Ukraine as Trump warns of sanctions

For the first time, human rights groups inside Israel are accusing their own government of committing genocide in Gaza. Israel insists it is targeting Hamas, not civilians—despite nearly 60,000 Palestinian deaths since the war began almost two years ago.

Rights groups in Israel accuse country of genocide

As Gaza’s crisis worsens, France is advocating for a two-state solution at a UN conference co-chaired by the French foreign minister. The meeting follows President Macron’s announcement that France will formally recognize a Palestinian state in September.

France leads UN talks on Israel-Palestine two-state solution

Former Colombian President Álvaro Uribe was found guilty of bribery and witness tampering in an unprecedented trial that has shaken the country.

Bogotá

Ex-Colombian president Uribe convicted of witness tampering, bribery

Russian Security Council Deputy Chairman Dmitry Medvedev posted on social media that President Trump's deadline push for a ceasefire with Ukraine is "a threat and a step towards war."

Moscow

Russian official calls Trump's ceasefire deadline 'a threat'

Ukraine says Russia's overnight air strikes hit a prison in Zaporizhzhia in the southeast, killing at least 17 people. Another 35 were injured. Authorities say the attacks destroyed the jail buildings and damaged several nearby houses.

Zaporizhzhia

Russian air strikes hit a prison in Ukraine's Zaporizhzhia, 17 killed

Russia launched yet another attack on Ukraine overnight, with more than 300 drones and seven missiles. While most of the barrage was intercepted, the attacks prompted President Trump to give his Russian counterpart an ultimatum.

Trump gives Putin new deadline to end Ukraine war

A gunman killed at least one police officer and shot a handful of other people Monday in the heart of New York City. CBS News New York has the latest details.

Gunman kills police officer, wounds others in Midtown Manhattan

The suspect in the Michigan Walmart stabbing attack that injured 11 people over the weekend pleaded not guilty Monday to terrorism and assault charges.

Traverse City

Suspect pleads not guilty in Walmart stabbing attack

The U.S. Department of Justice says it took down child abuse websites that had more than 120,000 members and contained millions of files. CBS News' Scott MacFarlane explains how the arrest of one suspect nicknamed "Boss" was a huge priority for the FBI.

U.S. Justice Dept. shuts down four child abuse websites

Five people, including security guards, were killed by a gunman at Bangkok's Or Tor Kor market on Monday. The shooter, who injured two others, later killed himself, according to authorities.

Bangkok

Gunman kills five at busy Bangkok fresh food market

Thailand and Cambodia have agreed to an “unconditional” ceasefire starting at midnight, Malaysian Prime Minister Anwar Ibrahim said on July 28, a significant breakthrough to resolve five days of deadly border clashes.

Kuala Lumpur

Thailand and Cambodia agree to ceasefire

Truckloads of food reached hungry Gazans on July 28 after Israel promised to open secure aid routes, but humanitarian agencies warned vast amounts more were needed to stave off starvation.

Food arrives in Gaza after Israel pauses some fighting

Top U.S. and Chinese economic officials will resume talks in Stockholm to try to tackle longstanding economic disputes at the center of a trade war, aiming to extend a truce by three months and keeping high tariffs at bay.

Stockholm

U.S.-China trade truce extension seen, may ease way for Trump-Xi meet

A train derailment in southern Germany killed at least three people and injured others. The cause is under investigation, with weather possibly a factor.

Riedlingen

German train derails, killing at least three people

Israel has agreed to limit fighting in parts of Gaza and would allow more aid into the region, but both moves are facing criticism for being too little too late.

Breakdown