U.S. Stocks Staying in Place as Investors Wait for Fed Rate Decision
Two key technology stocks are climbing this week and could move much faster as new deals have been approved that directly affect these.
Quick overview
- U.S. stock markets are in a holding pattern ahead of the Federal Reserve's rate decision, with a high likelihood of a rate cut.
- Tech stocks, particularly Netflix and Nvidia, are drawing investor interest due to significant developments in their businesses.
- Netflix is finalizing a major deal to acquire Warner Bros., which could enhance its competitive position against rivals like Disney.
- Nvidia has received approval to sell powerful AI chips to China, but may face challenges from both U.S. and Chinese regulations.
The U.S. stock markets have established a holding pattern as Wednesday’s Federal Reserve rate decision looms, and the likelihood of a new rate cut is very high.
The Dow Jones, the Nasdaq Composite, and the S&P 500 are all mostly flat as the trading session starts for Tuesday. Stocks climbed early on Monday, led by a minor tech rally, but then slowed down by the end of the day. Stocks appear to be moving little so far today but could surge as a Fed rate decision draws closer.
Investors should pay close attention to a few key tech stocks that are driving interest right now, particularly Netflix (NFLX) as it finalizes a major desal to buy up Warner Bros. They should also watch Nvidia (NVDA), since President Donald Trump just agreed to let the company send powerful H200 artificial intelligence processing chips to China.
Tech Stocks Lead the Way
The overall stock market in the United States may not be moving much Tuesday morning, but several technology stocks are making their moves in what may prove to be an incredibly important week for determining their future growth potential.
If Netflix can get regulatory approval for its deal with Warner Bros. to be able to buy the massive entertainment company, they will have incredible assets to leverage against rivals like Disney. Netflix has seen revenue growth throughout the year but has gradually slumped in the tail end of 2025.
The company is in sole talks with Warner Bros. to buy up all of the company’s assets, including HBO, the DC Universe films, and even a slate of upcoming projects to be released in theaters. Netflix’s owners expect the purchase to save them billions a year in licensing fees and other costs, and the deal is estimated to be worth almost $80 billion.
Nvidia has received permission to start selling its most powerful AI chips, the H200 to China. For years, the company has faced restrictions from the U.S. government on this issue. The United States is hoping to keep China from becoming a strong AI rival with technology and capabilities that rival that of the U.S.
Because of this latest move, however, Nvidia should be able to sell to that key market, but the company’s difficulties in reaching this market do not stop there. They also face restrictions from China, which has pushed to keep foreign technology companies out of the country. The Chinese government has been pushing its citizens to buy locally made technologies and to support their home grown AI market. It is possible that the government will respond to Nvidia’s new freedom from the U.S. government with their own restrictions.
In early morning trading for Tuesday, Netflix stock rose 0.36% and Nvidia’s stock went up 0.86%. These stocks could move dramatically this week, and investors should be paying close attention.
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