Dow, S&P 500, Nasdaq futures climb after Nvidia-China chip deal
U.S. stock futures moved slightly higher Tuesday morning following President Donald Trump’s approval of a deal allowing Nvidia (NVDA) to resume shipments of its H200 AI chips to China.
Investors are also watching closely for the Federal Reserve’s upcoming policy decision, which is widely expected to include an interest rate cut, News.Az reports, citing foreign media.
Dow Jones Industrial Average futures (YM=F) were mostly flat, while S&P 500 futures (ES=F) rose 0.1%. Nasdaq 100 futures (NQ=F) hovered near the previous day’s baseline after modest losses on Monday ended a recent streak of gains.
Nvidia shares jumped over 2% in after-hours trading after Trump’s announcement on Truth Social. The agreement allows the company to sell H200 chips to “approved customers” in China and other regions, with 25% of sales revenue going to the U.S. government. Trump noted that Chinese President Xi Jinping “responded positively” to the deal, bringing some stability to Nvidia’s China business after months of trade-policy uncertainty.
Investor attention now turns to the Federal Reserve’s final policy decision of the year, scheduled for Wednesday. Traders largely expect a quarter-point rate cut, following similar reductions in September and October. CME FedWatch data shows an 89% probability of another cut, up from roughly 67% a month ago. Outlooks for 2026 remain uncertain, with some projecting a “hawkish cut.”
Corporate earnings from major firms—including Oracle (ORCL), Broadcom (AVGO), Costco (COST), and Lululemon (LULU)—will also be in focus, particularly regarding trends in AI and retail among large-cap companies.
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