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Nvidia China Chip Deal: Trump Secures US Payment
9 Dec
Summary
- Nvidia can resume H200 AI chip shipments to China.
- A 25% payment to the US government is required for sales.
- The Fed's interest rate decision is expected this week.
US stock futures edged higher Monday night following President Donald Trump's authorization for Nvidia to resume shipments of its H200 AI chips to China. This development comes with a condition: 25% of the sales value must be paid to the U.S. government. Trump indicated that Chinese President Xi Jinping responded positively to this arrangement, offering increased security for Nvidia's business in China after a period of trade policy uncertainty.
In parallel, the financial world is focused on the Federal Reserve's upcoming policy decision, slated for Wednesday, which is the last of the year. Traders widely anticipate a quarter-point interest rate cut, aligning with previous reductions in September and October. Market indicators suggest a high probability of this move, though future rate strategies remain a subject of discussion among analysts.
Adding to the week's market activity, investors will closely monitor corporate earnings reports from prominent companies such as Oracle, Broadcom, Costco, and Lululemon. These reports are expected to shed light on current trends in megacap AI and the retail sector, providing further insights into market dynamics.
