Investors view Jensen Huang’s presence on the trip as a potential signal for eased chip export restrictions to China.
Nvidia shares rose over 2% in premarket trading Wednesday after CEO Jensen Huang accompanied President Donald Trump to China. The move fueled speculation about progress on chip export licensing, particularly for Nvidia’s H200 AI chips, which remain restricted for sale in China.
The Nasdaq 100 led index futures with a 0.8% gain, while S&P 500 contracts rose 0.2%. Dow Jones futures fell 115 points, or 0.2%. Chip stocks broadly rallied, with Micron up nearly 6% and the VanEck Semiconductor ETF gaining 2.2%. The PHLX Semiconductor index had surged over 30% in the prior month, driven by AI demand.
Markets had retreated Tuesday after a higher-than-expected inflation report pushed the 10-year Treasury yield above 4.46%. Huang’s inclusion on the trip was seen as a positive sign for tech investors, though broader sentiment remains cautious.