Morning Market Pulse: Trump Approves AI Chip Sales to China, Fed Rate Drama, and Magnificent Seven Moves

The pre-market tone is cautiously optimistic as commodity futures show mixed signals. WTI crude oil edged up 0.085% to $58.93, while gold and silver gained 0.389% and 1.490%, respectively, reflecting safe-haven demand. Copper, however, fell 1.524% to $5.3615, hinting at industrial demand concerns. With geopolitical tensions and Trump’s aggressive trade agenda dominating headlines, investors are bracing for volatility ahead of the open.

Top Market Stories

1. Trump Approves Nvidia H200 Chip Sales to China with U.S. 25% Share

President Trump greenlit the sale of Nvidia’s H200 AI chips to China, contingent on a 25% U.S. equity stake. This move, praised by Xi Jinping, could boost NVDA’s revenue but raises security concerns. The deal underscores Trump’s strategy of leveraging U.S. tech dominance in trade negotiations, potentially reshaping U.S.-China tech dynamics.

1. Trump Pressures Powell on Rate Cuts as Fed Nomination Test

Trump has made support for rate cuts a litmus test for his next Fed chair nominee, emphasizing lower rates for growth. While this aligns with his economic agenda, it risks inflationary pressures. The Fed’s independence will be tested, with markets watching for a balance between political pressure and economic data.

1. Magnificent Seven Dominance: Google Insider’s $1M Win, Citi Raises Apple Target

A Google insider made $1M betting on AI and Trump-related events on Polymarket, highlighting speculative fervor. Separately, Citi raised AAPL’s target to $330, citing AI-driven demand. The Magnificent Seven’s influence continues to drive market sentiment, with GOOGL and AAPL as key barometers.

1. Paramount’s $30-Share Bid for Warner Bros. Discovery Rejected Again

PARA renewed its $30/share offer for WBD, despite prior rejection. The $52B bid could reshape media consolidation but faces regulatory hurdles. A successful deal would give Paramount control of HBO and Warner Bros. studios, intensifying streaming competition.

1. Trump Threatens ‘Severe’ Tariffs on Canadian Fertilizer

Trump warned of steep tariffs on Canadian fertilizer if trade terms aren’t favorable. This escalates North American tensions and risks higher costs for U.S. farmers. The move reflects his protectionist playbook, with potential ripple effects on global commodity markets.

1. China’s ‘High-Quality Development’ Strategy Gains Momentum

China is pivoting to innovation and sustainability, reducing reliance on low-cost manufacturing. This shift could reshape global supply chains and U.S.-China trade talks. Investors should watch for tech and green energy sector opportunities in China.

1. Ukraine’s Peace Plan Leverages Frozen Russian Assets

Zelenskyy’s revised peace plan proposes using frozen Russian assets to fund Ukraine’s war effort. While legally complex, this strategy could provide a sustainable funding source. U.S. support will be critical, with implications for European security and energy markets.

1. SoftBank and Nvidia Invest in Skild AI for $1B+ Venture

SBGI and NVDA are backing Skild AI, a generative AI startup. The $1B+ investment highlights the AI arms race, with SoftBank’s capital and Nvidia’s tech creating a powerful synergy. This partnership could accelerate AI adoption in enterprise sectors.

1. IBM Shares Near 52-Week High on AI and Cloud Momentum

IBM is trading near its $324.90 52-week high, driven by AI and hybrid cloud growth. Analysts see long-term potential as enterprises adopt AI-driven solutions. The stock’s proximity to Stifel’s $330 target suggests continued optimism.

1. YaoPharma Secures $150M Upfront in Biotech Partnership

Chinese biotech firm YaoPharma secured a $150M upfront payment in a milestone-based deal. This reflects growing investment in China’s pharma sector, with potential for further payments tied to development milestones. The structure incentivizes innovation and commercial success.

Ticker/Company Watchlist

• NVDA: AI chip sales to China and Skild AI partnership could drive near-term gains.
• AAPL: Citi’s $330 target and AI product cycles position it as a Magnificent Seven bellwether.
• PARA/WBD: Regulatory and shareholder responses to the $30/share bid will shape media consolidation.
• IBM: AI and cloud momentum could push the stock closer to $330.
• GOOGL: Polymarket speculation and AI bets highlight its role in the Magnificent Seven.
• YAO: Biotech partnership’s milestone payments offer upside if development goals are met.

Analyst Summary

Today’s market sentiment is a mix of cautious optimism and geopolitical jitters. Trump’s AI chip approval and Fed rate drama dominate headlines, with NVDA and AAPL as key beneficiaries. The Magnificent Seven’s continued influence, coupled with AI and cloud momentum, suggests a focus on tech-driven growth. However, Trump’s tariff threats and Ukraine’s peace plan add uncertainty, urging investors to balance risk and reward. Analysts are split between bullish tech narratives and caution over political and geopolitical risks.

Upcoming Economic Highlights

• Dec 9, 2025: Japan’s military threat against China could escalate tensions, impacting global markets.
• Dec 9, 2025: Russian advances in Ukraine and Trump’s Transatlantic strategy may disrupt European security and trade flows.
• Trump’s National Security Strategy, which prioritizes U.S.-Russia alignment, could reshape global alliances and market dynamics. Investors should monitor these developments for potential volatility in energy, defense, and tech sectors.