China is set to approve imports of Nvidia’s H200 chips for commercial use, boosting Nvidia’s access to the Chinese market, while President Trump has called for a 50% increase in U.S. defense spending and imposed new restrictions on defense contractors. Other highlights include market reactions to these developments, a new U.S. strategy for Venezuela’s oil sector after Maduro’s capture, and ongoing shifts in global financial and commodity markets.
China is reportedly set to approve imports of Nvidia’s H200 chips for commercial use, marking a significant development for the U.S. tech giant, which has been largely shut out of the Chinese market since 2022 due to export restrictions. This move could allow Nvidia to regain access to the world’s largest semiconductor market, with major Chinese firms like Alibaba and Baidu expressing strong interest in purchasing large quantities of the chips. However, the chips will not be permitted for use in state-owned enterprises, government agencies, or the military. The approval is expected to boost Nvidia’s profits in the coming quarters and reflects successful lobbying efforts in both Washington and Beijing.
In the U.S., President Trump made headlines by calling for a dramatic 50% increase in the military budget, proposing to raise it from $1 trillion to $1.5 trillion. This announcement led to a surge in defense stocks globally, with companies like Lockheed Martin, RTX, and Northrop Grumman seeing significant pre-market gains. However, skepticism remains in Congress, including among Republicans, about the feasibility of passing such a large increase. Trump also signed an executive order requiring major defense contractors to halt stock buybacks and dividends until they invest more in domestic manufacturing and research.
On the economic front, markets showed a slight risk-off tone, with U.S. futures lower and the S&P 500 down 0.3% the previous day. The yield curve steepened slightly, and gold and copper prices declined, while Bitcoin slipped below $90,000. Challenger job cuts data showed layoffs at a 17-month low, suggesting continued labor market resilience, though analysts remain cautious about the outlook for consumer demand and earnings growth in the U.S. and Europe.
Venezuela was another major focus, as the U.S. government unveiled a new strategy for the country’s oil sector following the capture of Nicolás Maduro. President Trump announced that Venezuela would purchase only American-made products with proceeds from a new oil deal, positioning the U.S. as the country’s principal business partner. However, U.S. oil companies are seeking strong guarantees from Washington before committing to large investments, citing political instability and the high costs of reviving Venezuela’s oil infrastructure. Analysts expect only gradual improvements in Venezuelan oil production and continued U.S. control over export revenues.
Other notable stories included rising prices for luxury watches, extended trading hours for European gas and power markets, and renewed U.S. interest in Greenland for its rare earth minerals and energy potential. In financial markets, strategists from BNP Paribas and Natixis discussed the global fiscal impulse, the rotation into cyclical laggards, and the need for investors to diversify away from U.S. exceptionalism due to rising policy risks. The episode concluded with updates on Chevron’s talks with the U.S. government about operating in Venezuela and the broader implications for oil markets and international investment.