4:10pm: US-China deal welcomed
Stocks finished Monday’s session strong as investors welcomed the news that the US and China have reached an agreement to temporarily slash reciprocal tariffs.
The Dow Jones added 1,160 points or 2.8% at 42,415 points, while the Nasdaq added 4.4% at 18,708 points and the S&P 500 was up 3.3% at 5,844 points.
3:50pm: Favorable risk vs. reward for biopharma
UBS has taken a positive view of the Most Favored Nation (MFN) Executive Order, suggesting the risk-reward profile for the biopharma sector is more favorable than previously anticipated.
Despite earlier investor concerns, UBS believes the order signals a willingness by the administration to engage constructively with the industry on global pricing disparities.
“Despite the investor anxiety leading up to this announcement, we see today's Executive Order as an attempt by the administration to engage with the BioPharma industry on pricing disconnects between the US and ex-US countries,” said Trung Huynh, Head of Large Cap Pharma Analyst at UBS Investment Bank.
Huynh added that while President Trump has mentioned significant drug price reductions on social media, the actual implementation of MFN would likely require legislation. This legislative path could provide the industry more opportunities to push back, especially given internal Republican opposition. UBS also highlighted the potential upside if Trump’s broader goals—to raise ex-U.S. drug prices and reform pharmacy benefit managers (PBMs)—are realized.
3:01pm: Nasdaq in the lead
The Nasdaq is stealing the spotlight in today’s market rally, driven by optimism around tariff relief. By mid-afternoon, the tech-heavy index was up 4%, cutting its year-to-date losses to just 3.2%.
Leading the charge are the so-called “Magnificent Seven” tech giants. Apple, Nvidia, and Amazon are all seeing big gains — each jumping between 5% and 8%.
Meanwhile, the Nasdaq 100 has officially entered bull market territory, now up 21.7% from its recent low.
2:33pm: Stocks on the move
Pan American Silver Corp. shares plunged over 16% after announcing a US$2.1 billion acquisition of MAG Silver Corp., offering shareholders a mix of cash and stock.
American Bitcoin, backed by Eric and Donald Trump Jr., will go public through a merger with Gryphon Digital Mining, whose shares surged 170% on the news.
Shopify jumped more than 11% after it was announced the company will join the Nasdaq-100 Index, replacing MongoDB on May 19.
Amazon and Tesla led a rally in tech stocks following a temporary US-China trade truce that boosted investor confidence.
Zynex submitted a 510(k) application to the FDA for its NiCO device, which uses laser-based technology to improve oximetry accuracy across diverse patient groups.
Tekcapital rose 7% after its portfolio company Guident confidentially filed for a US IPO, signaling progress toward a public market debut.
1:46pm: Monday's headlines
China and the United States reported "substantial progress" in their weekend trade talks, sparking hopes of a dramatic reduction in tariffs between the two economic giants.
Apple Inc (NASDAQ:AAPL, ETR:APC) is considering raising the prices of its fall iPhone lineup along with the release of new features and design changes.
Eli Lilly and Co (NYSE:LLY)’s weight loss drug Zepbound (tirzepatide) has shown superior results compared to Novo Nordisk (NYSE:NVO)’s Wegovy (semaglutide) in a direct clinical trial, marking the first head-to-head comparison between the two leading obesity treatments.
US President Donald Trump issued an executive order Monday aimed at introducing “Most Favored Nation” (MFN) drug pricing, a policy designed to align US drug prices with those paid in other developed countries.
12:50pm: Investors cheer truce
Stocks roared higher by midday after news broke of a 90-day truce in the U.S.-China trade war, which includes major tariff rollbacks. The Dow jumped 2.4%, the S&P 500 climbed 2.8%, and the Nasdaq surged 3.8% as investors cheered the easing of trade tensions.
The rally was sparked by an agreement to slash reciprocal tariffs—from as high as 125% down to just 10%—for the next three months, a clear sign that both sides are making real progress toward a broader deal. Big tech stocks were the biggest winners, with Amazon, Apple, Tesla, Meta, and Nvidia all seeing strong gains, helping push the Nasdaq to the front of the pack.
Overall, the mood on Wall Street was one of cautious optimism. Investors are betting that the tariff relief will give the economy some breathing room and lower the odds of a recession. Riskier assets saw broad gains, particularly in consumer and tech sectors. The Dow's 2.4% rise, equivalent to around 900 to 1,000 points, marks one of the biggest single-day gains in recent months.
11:56am: De-escalation, not deal
From an economic perspective, UBS analysts noted that the tariff reduction represents a significant shift in trade relations.
UBS highlighted that the reduction in tariff rates would lower the aggregate weighted average tariff on US imports from China from around 24% to about 15%, a sharp contrast to previous levels exceeding 100%. However, they cautioned that the tariff changes need to be formally implemented before drawing any firm conclusions on the long-term economic impact.
While markets have reacted positively, some analysts, such as Jeff Buchbinder, chief equity strategist for LPL Financial, stressed that this is a "de-escalation, not a trade deal."
Buchbinder warned that while the reduction in tariffs is a positive development, the fundamental tariff rates are still high, with China’s 30% overall tariff rate and the US’s 10% base tariff on Chinese imports remaining in place. "All the good news is priced in," he said, adding that the risk of tariffs rising again as the pause ends still looms.
11:06am: Mag 7 stocks get China boost
Amazon and Tesla led a surge in Big Tech stocks on Monday, with Amazon rising 8.6% and Tesla gaining 5.7%, following the announcement of a temporary US-China trade truce.
Apple, Meta, and Nvidia also saw strong gains, while Google and Microsoft posted more modest increases.
While the rally in tech stocks boosted investor sentiment, Kathleen Brooks cautioned that the market may not reach new highs solely on the back of the deal.
“If tech continues to lead the rally in US stocks, then this rally could have legs, but we still do not see US stocks making fresh record highs on the back of the China/US trade deal,” said Brooks.
10:28am: Week ahead
Financial markets are beginning the week with an optimistic mood, as China and the United States reported "substantial progress" in their weekend trade talks, sparking hopes of a dramatic reduction in tariffs between the two economic giants.
With a press conference expected later today, traders are eagerly awaiting more details on the talks, particularly around the potential for tariff cuts and the future of US-China trade relations under the Trump administration.
Another area of interest this week is corporate forward guidance. Many US companies refrained from providing earnings forecasts during the first quarter, citing the uncertainty surrounding US-China trade relations.
If the trade situation improves significantly, there could be a surge in the release of forward guidance, which could boost sentiment and provide clearer expectations for future corporate earnings.
This week’s earnings season will include reports from hundreds of companies, with attention on Dow 30 members Cisco and Walmart.
9:46am: Tariff relief sends stocks soaring
Wall Street kicked off the week with a bang on Monday after the US and China reached a surprise agreement to cut tariffs for the next 90 days. The news sent a jolt of optimism through global markets and lifted major US indices in early trading.
The Nasdaq led the early rally, surging 3.3% to 18,517 with a gain of 588 points. The Dow followed, climbing 2.5% to 42,291, up 1,042 points, while the S&P 500 matched that 2.5% rise to reach 5,801, an increase of 141 points. In contrast, the Russell 2000 edged down 0.2% to 2,023, losing 3 points.
The surge came after both Washington and Beijing agreed to significantly lower tariffs. The US is scaling back its tariff on Chinese imports from 145% to 30%, while China is slashing its duties on US goods from 125% to 10%. The deal, struck over the weekend during negotiations in Switzerland, marked a major de-escalation in trade tensions and gave investors plenty to cheer about.
Tech and auto stocks, which have been among the hardest hit during the trade war, are now leading the rebound. Big names like Apple, Tesla, Nvidia, and Amazon are seeing early gains of between 5% and 8% in premarket trading.
Meanwhile, investors are pulling money out of traditional safe havens. Gold tumbled nearly 4% in early trading, and U.S. Treasury prices dropped as yields jumped above 4.45%.
Still, not every part of the market is feeling the love. The Russell 2000, which tracks smaller US companies, slipped 0.2%, suggesting some caution remains among investors with exposure to more domestically focused firms.
8:05am: Futures rip higher
US stock futures ripped higher Monday morning on the heels of a surprise breakthrough in US-China trade talks.
After weekend negotiations in Geneva, the two economic heavyweights agreed to slash tariffs on each other’s goods by a staggering 115 percentage points—at least for the next 90 days. That temporary truce has breathed new life into risk assets and set the stage for a strong open.
S&P 500 futures are up a solid 3%, while Dow futures have jumped nearly 1,000 points, or 2.4%. Not to be outdone, Nasdaq 100 futures are leading the charge with a 4% gain, as tech stocks catch a tailwind from the cooling trade tensions.
The reaction is broad-based. Gold prices are tumbling, a classic sign that investors are moving out of safe havens, and the 10-year Treasury yield is ticking up, rising four basis points to just over 4.4%. That suggests growing optimism about the economic outlook—and potentially fewer bets on near-term Fed rate cuts.
Treasury Secretary Scott Bessent added to the upbeat mood, saying discussions on Chinese fentanyl exports were “positive,” even though related tariffs are still in place. Meanwhile, President Trump announced plans to sign an executive order targeting drug prices, which may affect government healthcare programs but isn’t expected to rattle markets.
In corporate news, Eli Lilly is making headlines after its weight-loss drug Zepbound outperformed Novo Nordisk’s Wegovy in a Phase 3b trial. Expect biotech traders to keep a close eye on both stocks today.
Also worth watching: Apple is reportedly mulling an iPhone price hike, per the Wall Street Journal. Interestingly, the company says tariffs wouldn’t be the reason—perhaps a sign Apple’s navigating the trade situation more confidently than expected.
And in geopolitics, there’s a bit of calm on another front: India and Pakistan have signed a US-brokered ceasefire deal, adding to the broadly risk-on tone across global markets.
The rally in the US dollar reflects the brighter sentiment as well. With the trade truce in place and Treasury yields climbing, the greenback is finding plenty of support.
Looking ahead, traders will soon pivot to a busy week of economic data, with inflation and retail sales numbers on deck. Those will be key for shaping expectations around Fed policy—so while today’s rally is all about tariffs, keep an eye on the macro signals coming later this week.