US stock futures experienced a slight uptick Monday night following a significant development involving Nvidia and U.S.-China trade relations. President Donald Trump approved a deal that permits Nvidia to resume shipments of its H200 AI chips to China, boosting confidence in the tech giant’s market prospects. This announcement comes during a week marked by heightened attention on the Federal Reserve’s anticipated interest rate decision, expected to be a key focal point for investors.
In pre-market trading, Dow Jones Industrial Average futures remained mostly stable, while S&P 500 futures saw an increase of 0.1%. Notably, Nasdaq 100 futures climbed nearly 0.2%. This uptick comes after the major indexes had recorded modest declines earlier in the day, breaking a recent streak of gains.
Nvidia’s shares saw a rise of over 2% in extended trading hours. The company will now be able to sell its H200 chips to “approved customers” in China and other regions, with the stipulation that 25% of the sales revenue is remitted to the U.S. government. Trump noted on Truth Social that Chinese President Xi Jinping had a positive response to the arrangement, which adds a layer of predictability to Nvidia’s operations in China after a period of trade-policy uncertainty.
As the week progresses, all eyes will be on the Federal Reserve, which is set to make its final policy decision of the year on Wednesday. The consensus among traders suggests an expected quarter-point rate cut, aligning with similar reductions made in September and October. Current Fed funds futures indicate an 89% likelihood of another rate decrease, a significant rise from the 67% probability noted last month, as reported by the CME FedWatch tool. Nevertheless, forecasts for 2026 remain less certain, with some experts anticipating a “hawkish cut.”
Additionally, attention will be directed toward corporate earnings reports from major companies such as Oracle, Broadcom, Costco, and Lululemon, particularly as they relate to trends in artificial intelligence and retail.
Investors are poised for a week of crucial developments that could shape the trajectory of the stock market and broader economic landscape.
