Wall Street’s main indices opened flat as investors awaited earnings from AI leader Nvidia, which is expected to impact the broader technology-driven rally.
In the early hours of trading, the Dow Jones Industrial Average (.DJI) saw a slight increase of 66.3 points, opening at 45,484.45.46. The S&P 500 (.SPX) dropped 3.7 points, or 0.06%, to 6,462.26, while the Nasdaq Composite (.IXIC) fell by 17.9 points, or 0.08%, to 21,526.33.
In a recent move, President Donald Trump reversed the previous ban on Nvidia’s chip sales to China, lifting the restriction in July. However, the reversal came with a new condition: Nvidia is now required to pay a 15% fee on all chip sales to China, according to a Yahoo Finance report.
Nvidia is set to close out Big Tech’s earnings season today, with its second-quarter results scheduled for release after the bell on Wednesday. Under the leadership of CEO Jensen Huang, the company will report its earnings amid a series of significant policy shifts from the Trump administration that have directly affected its operations in China.
Earlier this year, Nvidia had warned that it could face an $8 billion hit to its Q2 earnings due to the initial ban, as discussed during the company’s Q1 earnings call. The situation remains complicated, particularly with Nvidia preparing to launch a new chip for the Chinese market based on its Blackwell architecture, which will need Trump’s approval.
Additionally, the Trump administration imposed a 100% tariff on semiconductor shipments to the US unless companies commit to domestic manufacturing. Despite this, Nvidia is expected to be exempt from the tariff, according to the same report.