US stock futures edged higher on Tuesday after President Trump signed off on allowing Nvidia (NVDA) to resume shipments of flagship AI chips to China, with the start of a highly anticipated Federal Reserve meeting.
Contracts on the Dow Jones Industrial Average (YM=F) were little changed, while S&P 500 futures (ES=F) nudged up 0.1%. Nasdaq 100 futures (NQ=F) were also up 0.1% after Wall Street stocks notched modest losses on Monday.
Nvidia (NVDA) shares rose over 2% in premarket trading after Trump said on Truth Social that the company can sell H200 AI chips to “approved customers” in China and other regions, provided that 25% of the sales value is paid to the US government.
Trump added that Chinese President Xi Jinping “responded positively” to the arrangement in a move that adds some security to Nvidia’s China business after months of trade-policy uncertainty.
Meanwhile, the spotlight turns to the Fed’s final policy decision of the year, set for Wednesday. Traders overwhelmingly expect a quarter-point interest-rate cut, matching moves in September and October. Markets are pricing in an 89% chance of that December easing, per the CME FedWatch tool. But prospects for further lowering of borrowing costs in 2026 are less certain.
On deck are corporate earnings from Oracle (ORCL), Broadcom (AVGO), Costco (COST), and Lululemon (LULU), with megacap AI and retail trends in focus.
