While the broader stock market drifted lower, major technology companies grabbed headlines with significant developments. Nvidia saw its shares climb 2.3% in after-hours trading after President Donald Trump sanctioned the sale of its H200 AI chips to approved customers in China. The move is viewed as a significant thawing of tech trade restrictions and is expected to bolster China’s ability to compete with U.S. AI models.
In another massive tech development, IBM announced an $11 billion deal to acquire Confluent. The acquisition is designed to help IBM’s clients better connect and process data, speeding up the deployment of artificial intelligence tools. The market reacted enthusiastically, sending Confluent stock up nearly 30%. These moves underscore the relentless demand for AI infrastructure and data capabilities, even as the wider market faces headwinds.
Outside of tech, the market mood was less optimistic. Asian shares mostly fell on Tuesday, with Hong Kong and South Korea posting losses. The U.S. markets also saw declines, with the S&P 500 and Nasdaq closing in the red. Investors are generally pausing ahead of the Federal Reserve’s interest rate decision, wary of potential signals regarding inflation and future cuts.
The media sector also saw disruption, with Paramount making a hostile all-cash bid for Warner Bros. Discovery. This challenges an earlier agreement with Netflix, whose shares fell 3.4% on the news. The aggressive move by Paramount highlights the consolidation pressures in the streaming and entertainment industry as companies fight for dominance.
Oil prices dipped slightly, and the dollar strengthened against the yen. However, the overarching theme of the week is the divergence between booming tech-specific news and a cautious macroeconomic outlook. As the Fed prepares to meet, the contrast between corporate ambition and economic reality continues to shape market dynamics.