Futures and options traders work on the NYSE American (AMEX) floor of the New York Stock Exchange on December 8, 2025 in New York City, USA.
Brendan McDiarmid | Reuters
Stock futures were little changed Tuesday morning even as Nvidia shares soared after President Donald Trump approved the sale of H200 chips to China in a deal that gave the U.S. government a steep cut.
Futures linked to the Dow Jones Industrial Average Just above the flat line. Future prospects for both S&P and Nasdaq 100 The amount added is less than 0.1%.
In after-hours trading, Nvidia Shares rose more than 2% after a post on Truth Social on Monday evening said the semiconductor manufacturing giant could ship its H200 chips to “approved customers” such as China on the condition that it pays a quarter of the proceeds to the U.S. government. President Trump wrote that Chinese President Xi Jinping had “reacted positively” to the agreement. Nvidia CEO Jensen Huang met with President Trump last week, and the agreement marks a victory for the tech giant after months of trade talks.
Tech stocks were the winners in Monday’s trading. of 11 S&P500 The tech sector was the only sector to close in the black, supported by gains in a number of semiconductor stocks. shares of broadcom Although it rose by nearly 3%, Nvidia and microsoft Each rose about 2% following a report in The Information that Microsoft is exploring custom chip designs with Broadcom.
Meanwhile, all three major U.S. stock indexes fell in the previous session, but the yield on 10-year U.S. Treasuries continued to rise amid persistent concerns about the impact of inflation.
This week, traders are awaiting the Federal Reserve’s long-awaited interest rate decision on Wednesday, the last of the year. Markets expect the Fed to cut its key overnight lending rate another quarter of a point, as it did at its September and October meetings. Federal funds futures now have an 89% chance of a decline, up from less than 67% about a month ago, according to CME’s FedWatch tool.
“A rate cut is almost a certainty at this point, but the Fed’s economic outlook and Chairman Powell’s commentary will play a big role in how the market reacts. It could set the tone not just for this week, but for the rest of this month,” said Brett Kenwell, U.S. investment analyst at eToro. “Following the recent sell-off in stocks and cryptocurrencies, risk-on investors are hoping the Fed will fuel a year-end rally, rather than pouring cold water on the recent rally.”
Stocks were boosted last week by a weaker-than-expected core personal consumption expenditure price index for September released on Friday. The average of the three major U.S. stocks ended the day higher for the second consecutive week.
Kenwell said the Fed is balancing overlapping factors in making policy decisions, including persistently high inflation, uncertain macroeconomic conditions, lagging economic data due to a record U.S. government shutdown, and expectations for a new chairman.
“There are a lot of variables for the Fed in 2026. … That raises a key question: If these factors persist into 2026, can the Fed strike an accommodative stance, or can the Fed’s dual mandate keep dovishness in check?” he said.
Separately, investors are expected to recap earnings reports from major artificial intelligence efforts this week oracle and broadcomwith retailers costco and lululemon.
