Mixed Market Movements: Wall Street Awaits Fed and AI Chip Trade Decisions

Wall Street had a mixed day as investors focused on the Federal Reserve's policy meeting and uncertainties regarding U.S. AI chip exports to China. President Trump's announcement on AI chip fees influenced Nvidia's stock. Amid inflation concerns, markets expect a rate cut, while bidding wars and sector performances also captured attention.

Wall Street's primary stock indexes presented a mixed performance on Tuesday as anticipation mounted for the Federal Reserve's forthcoming policy decision. Investors carefully evaluated contrasting reports on the future of U.S. AI chip exports to China, a focal point in international trade relations.

Notably, U.S. President Donald Trump declared that he would permit Nvidia to export H200 processors to China, contingent on a 25% export fee. Despite early gains in Nvidia's stock, shares fell following a report suggesting Beijing might restrict access to these chips. This development is pivotal as the U.S. and China navigate their trade dynamics.

The day saw the Dow Jones Industrial Average rise slightly, while the Nasdaq Composite fell. As the Federal Reserve's meeting unfolds, market participants are bracing for possible interest rate decisions amid ongoing inflation debates. Meanwhile, Paramount and Netflix's bidding war over Warner Bros and sectoral performances, like CVS Health's profit forecast and Home Depot's dip, contributed to the market's complex landscape.

(With inputs from agencies.)