Introduces Kevin Hanks from CBOE for pre-bell market thoughts.
Nicole
Kevin Hanks
Markets are jittery as Fed meeting starts, worried about Jerome Powell's comments and whether it will be a hawkish cut like last time or if Powell will acknowledge labor market weakness and positive effects of lower inflation.
Kevin Hanks
Market waiting for and nervous about summary of economic projections and overall outlook for interest rates.
A lot of cut may be priced in; hawkish cut indicating one cut then no more would not be liked by market; Fed likely to say data dependent.
Nicole
Turns attention to Nvidia and semis after Trump administration news about H200 chips sold to China with 25% revenue to US government.
Nicole
Kevin Hanks
Policy change allows Nvidia to sell H200 AI chips to China (more advanced than H20 chips); Trump administration takes 25% revenue share (up from 15%).
Chips only to approved companies in China; Chinese companies must explain why local alternative doesn't suffice.
Nicole
Asks about other economic prints being watched.
Nicole
Kevin Hanks
NFIB Small Business Optimism Index rose to 99.0 from 98.2; biggest contributor was increase in those expecting real sales higher; but uncertainty index rose 3 points over CapEx plans for next 3-6 months.
Kevin Hanks
ADP weekly jobs positive 4,750 vs last week's negative 13,500; good economic data so far this morning.
Last JOLTS declined 32,000 in November with weakness paced by 120,000 job losses from small business; BLS jobs released December 16 after Fed meeting.