Wall Street staged a robust rally Monday following the U.S.-China trade truce that slashed reciprocal tariffs by over 100 percentage points.
By midday, risk-on sentiment was running at full throttle, propelling the Nasdaq 100 up 3.5% and lifting the S&P 500 by 2.7% to 5,815.43—its highest level since March. The Dow Jones surged 958 points, or 2.3%, while the small-cap Russell 2000 added 3%.
Under the 90-day reprieve, the U.S. will cut tariffs on Chinese goods from 145% to 30%. China, in turn, will lower its tariffs on U.S. goods from 125% to 10%, effective May 14. The two countries also agreed to launch a formal mechanism for ongoing economic consultations, easing fears of a permanent decoupling.
U.S. Treasury Secretary Scott Bessent said the agreement followed “very robust discussions” in Geneva
The Magnificent Seven tech giants — Apple Inc. AAPL, Amazon.com Inc. AMZN, Nvidia Corp. NVDA, Meta Platforms Inc. META, Tesla Inc. TSLA, Alphabet Inc. GOOGL and Microsoft Corp. MSFT — added a combined $703 billion in market value Monday, their largest single-session gain since April 9.
| Company | Market Cap Gain ($ Billion) |
|---|---|
| Apple Inc. | 154.58 |
| Amazon.com Inc. | 150.44 |
| Nvidia Corp. | 146.29 |
| Meta Platforms Inc. | 101.89 |
| Tesla Inc. | 65.61 |
| Alphabet Inc. | 49.01 |
| Microsoft Corp. | 36.19 |
Sector-wise, chipmakers led the rally, with the iShares Semiconductor ETF SOXX jumping 7.2%. Marvell Technology Inc. MRVL and Micron Technology Inc. MU gained 9% each. Investors expect the trade truce to ease chip disruptions and stabilize overseas demand.
While equities soared, gold suffered its worst day since Trump’s election victory in November 2024. Gold prices dropped 3%, falling below $3,230 per ounce, as investors rotated out of safe havens and into risk assets.
The U.S. dollar index surged 1.3% to 101.8. The short-end of the curve also jumped, driven by fading expectations for near-term Fed rate cuts, with 2-year yields up 10 basis points to 4.0%. Yields on 30-year Treasury bonds climbed to 4.87%,
Oil prices rose 2% to $62.30 per barrel, reaching their highest level since late April amid hopes of a demand boost from improved global trade conditions.
Monday’s Performance In Major US Indices, ETFs
| Index | Price | 1-day %chg |
|---|---|---|
| Nasdaq 100 | 20,789.49 | +3.6% |
| Russell 2000 | 2,087.61 | +3.2% |
| S&P 500 | 5,823.41 | +2.9% |
| Dow Jones | 42,254.91 | +2.4% |
According to Benzinga Pro data:
- The SPDR S&P 500 ETF Trust SPY 2.9% higher to $580.72.
- The SPDR Dow Jones Industrial Average DIA rose 2.5% to $422.72.
- The tech-heavy Invesco QQQ Trust Series QQQ rose 3.7% to $505.86.
- The iShares Russell 2000 ETF IWM rallied 3.4% to $207.64.
- The Consumer Discretionary Select Sector SPDR Fund XLY outperformed, up 4.6%; the Health Care Select Sector SPDR Fund XLV lagged, down 1.2%.
Monday’s Stock Movers
Stocks reacting on earnings report included:
- NRG Energy Inc. NRG, up 24%,
- Fox Corp. FOX up 4.4%,
The S&P 500 biggest gainers were:
- NRG Energy Inc. +24.89%
- Stanley Black & Decker Inc. SWK: +15.56%
- Monolithic Power Systems Inc. MPWR: +12.61%
- Microchip Technology Inc. MCHP: +11.58%
- Zebra Technologies Corp. ZBRA: +11.44%
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