New York Stocks Fall Ahead of FOMC…U.S. Allows Nvidia Chip Exports to China [Morning Briefing]

◆ New York stocks close lower ahead of the FOMC

The three major U.S. stock indexes all closed lower. On the 8th local time, the Dow Jones fell 0.45% from the previous session to 47,739.32, the S&P 500 fell 0.35% to 6846.51, and the Nasdaq fell 0.14% to 23,545.9. Caution increased ahead of the Federal Open Market Committee (FOMC) meeting, and the sensitive reactions of major countries' government bond yields also had an impact. The FOMC will hold its final regular meeting of the year starting on the 9th, and the market views the uncertainty over how future interest rate cuts will proceed as an obstacle.

◆ U.S. government 'allows' Nvidia AI chip exports to China

The U.S. government has decided to allow Nvidia's artificial intelligence (AI) chip 'H200' to be exported to China. President Donald Trump said on the 8th local time, "I informed Chinese President Xi Jinping that Nvidia will be allowed to supply H200 products to Chinese customers. President Xi responded positively." Allowing high-performance AI chips to be exported to China is expected to increase Nvidia's earnings and appears to accept Jensen Huang CEO's argument that "U.S. technology can remain the global standard." The H200 chip is not Nvidia's latest Blackwell chip, but it boasts overwhelming performance compared with the H20 currently exported to China.

◆ Ukraine and European leaders discuss ceasefire plan…"Differences with the U.S."

Ukrainian President Volodymyr Zelensky met on the 8th local time with leaders of major European countries such as the UK, France, and Germany to discuss plans for ending the war and postwar security guarantees. The ceasefire negotiations for Ukraine, which have proceeded with mediation by President Trump, were on the agenda, but it was reported that there were some differences with the U.S. regarding territorial issues. Earlier, President Trump expressed disappointment, saying that President Zelensky "had not read the U.S. proposal." Despite the differences in views, the leaders issued a statement emphasizing the importance of progress, consultation, and coordination on the ceasefire plan while focusing on postwar security guarantees.

◆ National Assembly plenary session…Possibility of passing the 'Filibuster Requirement Strengthening Act'

The National Assembly will hold a plenary session today (the 9th), the last day of this year's regular session, to consider bills. About 70 non-controversial and livelihood-related bills, including the "Special Act on Strengthening and Supporting the Competitiveness of the Semiconductor Industry" agreed upon by the Industry, Trade, SMEs and Startups Committee, are expected to be submitted. There is also the possibility of handling contentious bills, such as the revision to the National Assembly Act that would allow the Speaker to halt a filibuster if one-fifth of the registered members, i.e., 60 or more members, do not attend, and the amendment to the Outdoor Advertisement Act to strengthen management of party banners containing hateful or defamatory expressions.

◆ Morning temperatures drop 5–7 degrees…Subzero cold on the commute

On Tuesday, morning temperatures will remain below freezing in most parts of the country. Morning temperatures, mainly in the southern regions, are expected to fall by 5–7 degrees or more compared with the previous day, and daytime temperatures are forecast to be 6–11 degrees. Fine dust levels are expected to be "good" or "moderate" nationwide. In areas under dry-weather advisories—Gangwon East Coast and mountains, North Gyeongsang East Coast and northeastern mountains, Daegu, and parts of South Gyeongsang—winds will be somewhat strong, so attention to fire prevention is needed.

Bonggu Kim, Hankyung.com reporter kbk9@hankyung.com