Wall Street Futures Steady as Markets Await Fed Decision; Nvidia Gains on China Chip Sales Approval

Wall Street futures were mostly unchanged on Monday evening as investors remained cautious ahead of the Federal Reserve’s final policy meeting of the year. Markets widely expect the Fed to deliver another 25-basis-point interest rate cut, but traders are waiting for clearer signals on the central bank’s outlook for the U.S. economy amid ongoing uncertainty. By 18:36 ET (23:36 GMT), S&P 500 futures inched up 0.1% to 6,861.25, Nasdaq 100 futures also rose 0.1% to 25,697.25, while Dow Jones futures traded flat at 47,782.0.

After a weak session on Wall Street marked by profit-taking and pre-Fed caution, attention turned to Nvidia, which saw its shares climb 2.2% in after-hours trading. The rally followed comments from U.S. President Donald Trump, who confirmed he would permit Nvidia to sell its advanced H200 artificial intelligence chips to select customers in China and other regions. These sales will be subject to a 25% tariff and security reviews to safeguard U.S. interests. Trump said Chinese President Xi Jinping responded positively to the update.

The H200 chip, introduced in 2023, is considered significantly more powerful than the H20 model—the most advanced unit currently allowed for sale in China. The decision marks a potential boost for Nvidia, whose AI processors are widely used by Chinese tech firms. However, Beijing has tightened scrutiny on U.S.-made chips this year as part of its push for AI independence, and Nvidia previously announced it would exclude China from its long-term revenue forecasts.

Meanwhile, U.S. indexes closed lower Monday, with the S&P 500 slipping 0.4% to 6,846.51, the Nasdaq Composite easing 0.1% to 23,545.90, and the Dow Jones dropping 0.5% to 47,739.32. Cooling inflation data last week reinforced expectations for a Fed rate cut, but investors are watching closely for guidance on economic conditions heading into 2025.