Dow and NVDA Stock Rebound As Trump Hints at Exporting Nvidia Chips to China
The Dow Jones and stock market saw a nice comeback on Friday following a sharp midweek selloff, driven by new conjecture about Nvidia, China
Quick overview
- After a significant selloff earlier in the week, the Dow Jones rebounded by approximately 1.50% on Friday, finding support at the 100 daily simple moving average.
- The recovery was partly driven by speculation regarding Nvidia's H200 chips potentially being allowed for sale to China, which boosted investor sentiment.
- Despite the positive end to the week, technical challenges remain, with the 50 daily SMA acting as resistance that needs to be overcome for a sustained recovery.
- The market's future direction will depend on whether the Dow can reclaim the 50-day moving average and if discussions around Nvidia and China lead to concrete policy changes.
Live DOW Chart
The Dow Jones and stock market saw a nice comeback on Friday following a sharp midweek selloff, driven by new conjecture about Nvidia, China policies, and technical support levels.
Markets Snap Back After Sharp Weekly Selloff
Stock markets stumbled heavily during the week, with the steepest damage occurring on Thursday. By Friday, however, sentiment had improved notably. The Dow Jones Industrial Average rebounded by around 1.50% after finding support at the 100 daily simple moving average (green).
While the bounce offered short-term relief, technical hurdles remain ahead. The 50 daily SMA (yellow) stalled further gains on Friday, acting as resistance. For the broader uptrend to reassert itself, buyers will need a decisive break above that level next week.
Dow Jones Chart Daily – The 100 SMA Held As Support
The rebound appeared to receive an unexpected boost from political developments. There has been a breaking report suggesting that Donald Trump’s team is floating the idea of allowing Nvidia’s H200 chips to be sold to China.
This proposal has surfaced and faded a few times over the past month, but its re-emergence was enough to lift sentiment temporarily. Trump has long been known to dislike falling markets, and the renewed optimism reinforced belief in what many traders refer to as the “Trump put.”
Nvidia Moves Sharply on H200 Reports
Nvidia shares jumped following the report, rebounding from around $173. The rally in Nvidia did not only lift the semiconductor giant — it also helped spark a broader recovery across the market. This indicates how closely tied investor confidence is to developments surrounding AI chips and global trade policy.
Nvidia Chart Daily – NVDA Returns Above Support
It is worth noting that the H200 is not Nvidia’s most advanced product. It belongs to the Hopper generation, which sits behind the Blackwell line. Previously, even Nvidia’s H100 chips were blocked from being sold to China back in 2022, before they had even officially launched. That historical context makes any potential easing of chip exports all the more significant for markets.
According to the report, no final decision has been made on the H200 proposal. Sources emphasized that the idea may remain an internal discussion and may never translate into official license approvals, which are still required under export control rules originally imposed in 2022.
A Fragile But Positive End to the Week
Despite the uncertainty, Friday’s rally brought a welcome change in tone after Thursday’s sharp collapse. Some observers believe these chips may already be making their way into China through indirect channels, and that formalizing the process would merely remove middlemen from the equation.
Either way, the end of the week closed on a more positive footing. Whether this rebound becomes a sustained recovery will largely depend on the Dow’s ability to reclaim the 50-day moving average and whether rhetoric surrounding Nvidia and China evolves into concrete policy.
For now, the market has breathed again — but the next move will determine whether Friday’s bounce was a turning point or just another pause in volatility.
Dow Jones Live Chart
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