Dow Futures indicate a general upward trend. A significant – and potentially controversial – Federal Reserve interest rate decision on Wednesday is approaching, as traders meticulously analyze the intricacies of a new development in the prospective acquisition of portions, or perhaps the entirety, of Warner Bros Discovery. In other developments, the White House has announced that it will permit Nvidia to commence shipments of its second-most advanced H200 processors to China, while Bitcoin experiences a slight decline.

Dow Futures were positioned slightly above the neutral mark on Tuesday, as market participants prepared for a highly awaited Federal Reserve interest rate decision later in the week. By 02:55, the Dow futures contract had increased by 26 points, reflecting a rise of 0.1%. Similarly, S&P 500 futures were up by 8 points, also a 0.1% increase, while Nasdaq 100 futures saw a gain of 26 points, marking a 0.1% uptick. The primary indices concluded the previous session in the red, impacted by an increase in Treasury yields, indicating that a sense of caution may be taking hold in anticipation of the Federal Reserve’s forthcoming announcement on Wednesday (more below). Benchmark 10-year Treasury yields, which typically exhibit an inverse relationship with prices, experienced upward momentum following a significant earthquake that occurred off the coast of Japan. In addition to the Federal Reserve and the bond market, traders are bracing for the upcoming earnings reports from technology leaders Oracle and Broadcom this week. This anticipation occurs amid market concerns regarding substantial, frequently debt-fueled, investments in artificial intelligence. In individual stocks, shares of Confluent surged following IBM’s announcement of its acquisition of the data-infrastructure firm, whereas a pessimistic forecast from Morgan Stanley resulted in a 3% decline in Tesla’s stock price.

The ongoing struggle in Hollywood to secure Warner Bros Discovery and possibly transform the media landscape has evolved once more. Shortly following Netflix’s designation as the victor in a competitive bidding process for the studio responsible for iconic films such as “The Godfather,” Paramount Skydance announced the initiation of a hostile bid valued at $108.4 billion. The amount would exceed the $72 billion equity deal Netflix secured for Warner’s television, film studios, and streaming assets, representing a 139% premium over the company’s value prior to the initiation of buyout negotiations. Paramount’s competing offer would encompass the entirety of Warner, which includes its cable television assets. On Monday, Warner’s board of directors announced that it would evaluate Paramount’s offer; however, it maintained its stance regarding the Netflix transaction and advised the company against taking any steps concerning the competing proposal.

The U.S. has granted Nvidia permission to export its H200 AI chips to China, with President Donald Trump announcing that the company will earn a 25% fee on these transactions. It signifies a slight shift from certain export limitations that the U.S. had imposed on the transfer of advanced AI processors to China. Historically, the most sophisticated semiconductor that Nvidia could export to the nation was its earlier H20 model, highlighting ongoing apprehensions among certain U.S. legislators regarding the progression of China’s military and industrial prowess. The H200 is projected to possess approximately six times the power of the H20, as reported, referencing findings from the non-partisan Institute for Progress think tank. Nevertheless, in light of Beijing’s recent enforcement actions against domestic firms utilizing U.S. technology, the potential impact of the White House’s new policy on Nvidia’s sales remains uncertain. Shares of Nvidia, a prominent player in the AI boom, increased in extended hours U.S. trading, building on a 3% rise in the stock on Monday.

Attention is increasingly focused on the commencement of the Fed’s latest two-day policy meeting, with investors anticipating that it will conclude on Wednesday with a reduction in U.S. interest rates. Bets on a 25-basis point reduction by the U.S. central bank have risen in light of a series of relatively lackluster economic indicators that highlighted strain on the American job market, a slight uptick in consumer spending, and stable, though high, inflation levels. The probability of such a drawdown currently stands at approximately 89%, as per indication. The Federal Reserve’s prevailing target rate is presently situated between 3.75% and 4%. Nonetheless, there remains a possibility that officials may opt to maintain rates at the current level, as certain policymakers have recently expressed apprehensions about implementing a third cut since September amid a period characterized by a lack of new economic data due to an unprecedented government shutdown. Analysts have indicated that the decision could emerge as one of the most contentious in recent years.

Bitcoin exhibited indications of consolidation, as traders opted to withhold from establishing new positions in anticipation of the Federal Reserve meeting. Typically, lower interest rates lead to a depreciation of the U.S. dollar and diminish returns on cash and fixed-income assets, potentially enhancing the appeal of alternative, non-yielding assets such as Bitcoin. In light of anticipated extended monetary easing, the leading cryptocurrency has experienced significant volatility in 2025, reaching new historical highs before retreating, as discussions surrounding interest rates, trade policies, and artificial intelligence have unsettled equity markets. This has consequently supported an increasing perception that the correlation between Bitcoin and risk assets such as stocks has intensified.