US stocks rally on tech surge as Nvidia H200 export approved to China
US stocks rally on tech surge as Nvidia H200 export approved to China
Tech-led rally lifts major indices amid Nvidia H200 export approval and Beijing talks, with inflation and energy prices shaping Fed rate expectations.
US stocks closed higher on a tech-led rally as Nvidia wins approval to export its H200 AI chips to China, lifting sentiment across chipmakers and software names. The S&P 500 and Nasdaq posted fresh record highs while investors weigh the potential for smoother AI demand against geopolitical jitters in Beijing, including the ongoing Trump-Xi talks.
Nvidia's export green light marks a notable step in the AI hardware race, even as some China-facing restrictions linger. Chinese peers push domestic chips to capture AI compute demand, even as Nvidia remains a dominant supplier to many global cloud players.
Market breadth was positive with notable gainers like Cisco Systems, AppLovin, JB Hunt Transport Services, and TKO Group Holdings leading the rally, while energy-linked names like Coterra Energy lagged amid shifting inflation risk. Retail sales data showed resilience, easing some fears about a sharper slowdown, but investors remain wary of rising energy prices feeding inflation and cooling Fed rate-cut expectations.
Beyond the US, Asian markets copy the tech optimism, with attention turning to the US-China summit and broader geopolitical developments. Analysts say the path for near-term gains hinges on policy signals from Washington and Beijing, plus how inflation momentum evolves with energy costs.
In this environment, traders are parsing every headline from the Beijing talks and every chip-related development, ready to react to shifts in AI demand, supply chain moves, and policy signals.
