US Stock Market Outlook: Trump May Cut Tariffs; Fed's Final Meeting; Nvidia Volatile.

Market Overview Ahead of Fed Meeting

On Tuesday morning, the Federal Reserve is set to hold its final interest rate meeting of the year, with markets eagerly awaiting the outcome. U.S. stock index futures showed slight fluctuations, with the Dow futures up 0.08%, Nasdaq futures up 0.03%, and S&P 500 futures up 0.08%.

Pre-Market Movements

Most major tech stocks were down in pre-market trading, with Nvidia (NVDA) rising over 1%, while Tesla (TSLA), Meta Platforms (META), and Alphabet (GOOGL) saw minor declines. Chinese stocks also faced a downturn, with Baidu (BIDU) dropping over 3%, Xpeng Motors (XPEV) nearly 3%, and Alibaba (BABA), Pinduoduo (PDD), and JD.com (JD) all down over 1%.

Nvidia's Chip Sales Approval

Nvidia's stock experienced volatility after the U.S. government announced it would allow the company to sell H200 AI chips to qualified customers in China and other countries, with 25% of sales revenue going to the U.S. government. This rule also applies to other U.S. companies like AMD and Intel.

Google and Advertising Plans

Reports suggest that Google plans to introduce advertising services in its AI chatbot Gemini by 2026, although the company has denied these claims. Advertisers are keenly watching for monetization opportunities within AI assistants.

Corporate Developments

Paramount's Bid for Warner Bros

Paramount Skydance has launched a cash bid of $30 per share for Warner Bros Discovery, challenging Netflix's cash and stock proposal. This move comes amid regulatory scrutiny and market dynamics favoring Paramount's offer.

Ares Management Joins S&P 500

Ares Management's stock rose over 8% in pre-market trading after it was announced that the asset management company will be added to the S&P 500 index on December 11.

Walmart's Move to Nasdaq

Walmart has officially moved its listing from the New York Stock Exchange to Nasdaq, marking the largest listing migration in U.S. history. Analysts suggest this move may attract more passive fund investments.

Alibaba's New Business Group

Alibaba has established a new consumer-focused business group, Qianwen, aimed at creating a super app and expanding its AI capabilities across various platforms.

Economic Insights

Trump on Tariffs and Interest Rates

President Trump indicated that he might lower tariffs on certain goods and suggested that immediate interest rate cuts would be a key factor in selecting the new Fed chair.

Fed's Upcoming Decision

The Fed is expected to lower rates for the third consecutive meeting, but there may be dissenting votes among committee members. Analysts predict that if dissent occurs again, it could match the total dissent from the previous 47 meetings.

Market Predictions

J.P. Morgan strategists warn that the recent stock market rally may stall as investors lock in profits following anticipated rate cuts. They remain optimistic about the mid-term outlook, citing supportive Fed policies.

Global Central Bank Divergence

There is a growing divergence in global central bank policies, with expectations for rate hikes in the Eurozone and Australia, while the Fed is anticipated to continue lowering rates.