Stocks Surge After US, China Agree to Slash Tariffs; Dow Jumps Nearly 1,200 Points as Amazon, Apple, Nike Soar

Biggest S&P 500 Movers on Monday

May 12, 2025 06:16 PM EDT

Advancers

NRG Energy (NRG) soared 26% to lead the S&P 500 higher after the company delivered better-than-expected quarterly results and an optimistic earnings outlook. NRG’s adjusted earnings per share of $2.68 was more than 60% higher than the consensus estimate of analysts polled by Visible Alpha. The energy firm also announced a $12 billion acquisition of natural gas assets from LS Power Equity Advisors, adding 18 natural gas facilities across nine states. 
Stanley Black & Decker (SWK) shares jumped 16% as the tools maker was in position to benefit from relaxed tariffs on China. The maker of DeWalt and Craftsman tools had previously projected that tariffs would cut its full-year earnings per share by about 75 cents. 
Automation software maker Zebra Technologies (ZBRA) climbed more than 12%. It unveiled new manufacturing automation products at a conference this weekend. 
Trucking and shipping companies, which stood to lose cargo volume from a decline in China trade, moved higher, with Old Dominion Freight (ODFL) advancing 11% and J.B. Hunt Transportation (JBHT) rising nearly 10%.
Home improvement product maker Masco (MAS) rose more than 11% on investor optimism that tariff negotiations will help the company avoid steep cost increases. 

Decliners

Gold miner Newmont (NEM) was the worst performer in the S&P 500, sliding 5.9%, as prices for the precious metal fell amid the stock-market rally. Investors use gold as a safe-haven asset during periods of market volatility. Gold fell by more than 3% Monday as investors shifted out of the yellow metal and into the surging stock market. 
Cigna Group (CI) fell 5.3% following President Donald Trump’s executive order on prescription drug prices, which investors believed could have an impact on pharmacy benefit managers, companies that administer drug benefits for health managers. CVS Health Corp (CVS) also declined.

MarketAxess Holdings (MKTX), an electronic trading platform for fixed-income securities, dropped 5.6% after it completed the purchase of a 90% majority stake in the RFQ-hub platform.

-Terry Lane

Tesla Rides Market Rally Back Into $1 Trillion Club

May 12, 2025 05:49 PM EDT

Tesla (TSLA) shares surged Monday, pushing the company’s market capitalization back above $1 trillion.

Shares of Tesla rose nearly 7% to close at $318.38 Monday, bringing the company’s market cap to $1.02 trillion. That makes the Elon Musk-led automaker one of just nine American companies worth $1 trillion or more, along with Microsoft (MSFT), Apple (AAPL), Nvidia (NVDA), Amazon (AMZN), Alphabet (GOOGL), Meta (META), Berkshire Hathaway (BRK.A, BRK.B) and Broadcom (AVGO). 

Tesla’s stock has climbed for three consecutive weeks, but the shares are still down more than 20% for 2025. The EV maker has faced a political backlash  over CEO Elon Musk’s involvement in the Trump administration’s cost-cutting efforts, with shares erasing much of their gains in the wake of President Donald Trump’s election win. Last month, Musk said he would step back from Trump’s Department of Government Efficiency to spend more time with Tesla.

Sales have lagged, including in China, where the company shipped fewer vehicles in April than it did a year earlier. Last month marked Tesla’s seventh straight month of year-over-year declines in shipments from China, according to preliminary data from the China Passenger Car Association.

-Andrew Kessel

Walmart Levels to Watch Ahead of Earnings Report

May 12, 2025 05:40 PM EDT

Walmart (WMT) shares are in the spotlight this week ahead of the big box retailer’s first quarter results, due before the opening bell on Thursday.

Last month, the retailer maintained its guidance of 3% to 4% sales growth for the first quarter, but cautioned its “range of outcomes” for operating income growth had widened amid tariff uncertainty. However, analysts at Morgan Stanley recently pointed out the retailer sits well positioned to manage import duties given its scale, supply chain advantages, and category mix.

Walmart shares closed little changed at around $97 on Monday, even as the broader market rallied following news that the U.S. and China had agreed to suspend for 90 days the huge tariffs that the countries had imposed on one another. The stock has gained 7% since the start of the year, outpacing the performance of major stock indexes, and have jumped 60% over the past 12 months, boosted in part by the retailer’s ability to attract higher income customers and grow its e-commerce business.

Since a bear trap below the 200-day moving average emerged on Walmart’s chart last month, the shares have staged a sharp turnaround. More recently, the stock has consolidated on declining trading volume ahead of the retailer’s quarterly results this week, indicating that larger market participants, such as institutional investors, remain on the sidelines leading into the report. However, the relative strength index remains above neutral territory, signaling bullish price momentum.

Investors should watch major support levels on Walmart’s chart near $90 and $85, while also monitoring important resistance levels near $100 and $105.

Read the full technical analysis piece here.

-Timothy Smith

Is Stock Market Out of the Woods After Tariff Reprieve?

May 12, 2025 04:43 PM EDT

Stocks were buoyant on Monday after White House officials said the U.S. and China had agreed to scale back tariffs for 90 days as negotiators work on a long-term deal.

The reprieve exceeded Wall Street’s expectations and reassured some investors that President Trump’s steepest tariffs are more a negotiating tactic than a permanent policy.

Analysts warn that the administration still has plenty of work to do, with negotiations between the U.S. and dozens of countries continuing and “Liberation Day” tariffs set to go back into effect in early July.

Read the full article here.

-Colin Laidley

Stanley Black & Decker Surges on Tariff Relief

May 12, 2025 04:16 PM EDT

Shares of Stanley Black & Decker (SWK) jumped 16% on Monday, making the stock one of the biggest winners in the S&P 500.

The maker of DeWalt and Craftsman power tools last month said it would have to raise prices as one of several mitigating actions to limit the impact of the Trump administration’s sweeping tariffs. The company projected that the tariffs would reduce its full-year earnings per share (EPS) by approximately 75 cents.

Stanley Black & Decker shares trailed only NRG Energy (NRG), which topped first-quarter estimates and announced a $12 billion acquisition, among S&P 500 winners Monday.

-Aaron McDade

Pharma Stocks Rebound After Early Decline on Trump Plan

May 12, 2025 03:40 PM EDT

Global pharmaceutical shares jumped in intraday trading Monday, reversing their pre-market declines, as investors anticipated the legal challenges that may result from attempts to carry out President Donald Trump’s executive order on drug prices.

Trump signed an executive order Monday directing government health insurance agencies to buy medicines at the lower prices that drugmakers charge outside the U.S., potentially cutting drug costs, he said, by 59% to 90%. The order stipulates that Medicare, the government’s health insurance program for the elderly, and Medicaid, the program for people with lower incomes, will offer to pay pharmaceutical companies the lowest prices charged in other developed countries. 

The executive order came a day after Trump posted on his Truth Social platform about a plan to reduce the prices of prescription drugs, sending shares of global pharmaceutical stocks tumbling early Monday. Following the release of the executive order, however, drug makers Eli Lilly (LLY), Pfizer (PFE), AbbVie (ABBV), Merck (MRK), and Novo Nordisk (NVO) all were up by Monday afternoon, trading between 2% and 7% higher.

Citi analysts on Monday said that details of the government’s plans to bring down drug prices are “still vague” but the “language in the EO has less focus on PBMs than expected, and we think challenging enforcement and likely headwinds in court is leading a rebound in the space.”

PBMs, or pharmacy benefit managers, are companies that administer drug benefits for health insurers and work with insurers, drug makers, and pharmacies.

U.S. drug prices are nearly three times higher than those charged in other developed countries, according to U.S. government data. Branded drugs are more than three times higher, even with rebates included.

-Nisha Gopalan

Heavily Exposed to China, Casino Stocks Jump

May 12, 2025 03:22 PM EDT

Shares of casino operators Wynn Resorts (WYNN), Las Vegas Sands (LVS), and MGM Resorts International (MGM) surged to outpace the broader market Monday on news the U.S. and China agreed to slash tariffs for 90 days.

The stocks are heavily exposed to the Chinese economy given their casino operations in the special administrative region (SAR) of Macau, or Macao. Both Wynn Resorts and Las Vegas Sands generated 47% of their first-quarter adjusted property EBITDA in Macau. Meanwhile, MGM Resorts International’s MGM China unit produced 45% of its Q1 adjusted EBITDA.

In its first-quarter report last month, Las Vegas Sands said its Macau market growth had “softened in the current environment,” but added it was well-positioned for future growth given its “decades-long commitment to making investments that enhance the business and leisure tourism appeal” there.

Shares of Wynn Resorts, Las Vegas Sands, and MGM Resorts International were up roughly 7%, 6%, and 5%, respectively, in recent trading on a day when the benchmark S&P 500 was advancing 3%. For the year, Wynn shares are up about 10%, while those of Las Vegas Sands and MGM Resorts are down 18% and 1%, respectively.

-Aaron Rennie

NRG Soars After Earnings, Deal to Buy Natural Gas Assets

May 12, 2025 02:33 PM EDT

Shares of NRG Energy (NRG) skyrocketed on Monday after the firm delivered better-than-expected first-quarter results and announced a $12 billion acquisition of natural gas assets from LS Power Equity Advisors.

The company delivered adjusted earnings per share (EPS) of $2.68, more than 60% higher than the consensus of analysts polled by Visible Alpha. Revenue rose more than 15% year-over-year to $8.59 billion, also beating expectations.

Looking ahead, NRG said it still expects full-year adjusted EPS of $6.75 to $7.75. The midpoint of the range is ahead of analysts’ projected $7.15.

Also Monday, NRG agreed to acquire a portfolio of natural gas assets from LS Power Equity Advisors in a $12 billion deal. NRG said the move doubles its generation capacity to about 13 GW by adding 18 natural facilities across nine states. The transaction is expected to close in the first quarter of 2026.

NRG Energy shares were up 25% in mid-afternoon trading, leading S&P 500 gainers. The stock, which is trading at an all-time high, has gained 65% since the start of the year.

-Andrew Kessel

Big Tech Has Powered Q1 Earnings to Strong Growth

May 12, 2025 12:48 PM EDT

First-quarter earnings have continued to come in strong, though Big Tech is very much in the driver’s seat. 

Some 90% of the companies in the S&P 500 have reported their latest results through Friday, according to FactSet, with the numbers pointing toward overall year-over-year growth of above 13%. If that holds, it would mark a second-straight quarter of double-digit growth, FactSet said. Companies are beating estimates at a rate just above the five-year average, but to a slightly smaller degree.

Nvidia’s (NVDA) numbers aren’t in yet—they’re due later this month—but first-quarter earnings from mega-cap tech stocks are so far up 28% year-over-year, compared with 9% for the rest of the S&P 500, Goldman Sachs analysts wrote Friday. 

That Nvidia report will still be closely watched as investors look for more clues regarding the outlook for AI growth and Big Tech broadly. This week, however, investors may largely be looking instead at trade and inflation—U.S.-China trade tensions show signs of easing after a pullback in reciprocal tariffs was announced, and April’s CPI report is due tomorrow. 

“This pause gives U.S. companies more time to adapt and to plan for contingencies should the trade talks go sideways again,” wrote Harris Financial Group Managing Partner Jamie Cox earlier today.

Walmart (WMT), Applied Materials (AMAT) and Take-Two Interactive (TTWO) are among the companies of note set to report this week. A more detailed roundup of the week’s key events is here.

-David Marino-Nachison

Apple Reportedly Mulling iPhone Price Hike

May 12, 2025 11:45 AM EDT

Apple (AAPL) is reportedly considering raising prices on its next generation of iPhones expected to be released this fall—but without pinning higher costs on tariffs. 

The company wants to avoid the perception that higher prices for its iPhone 16 successor are attributed to a trade war with China, where many Apple devices are produced, The Wall Street Journal reported Monday. Apple did not immediately respond to a request for comment.

The report comes as the U.S. and China agreed to dramatically roll back tariffs on each other’s imports for 90 days. The U.S. levy on Chinese imports will be reduced to 30% from 145% by Wednesday, while Beijing’s tariffs on U.S. goods will drop to 10% from 125%, according to U.S. Treasury Secretary Scott Bessent. 

Most Apple products are exempt from President Donald Trump’s “reciprocal” tariffs on Chinese goods. However, iPhones and other devices are still affected by the 20% import tax the White House put in place earlier in the year to combat fentanyl trafficking. Shares of Apple popped more than 5% in recent trading Monday amid the broader market gains.

Earlier this month, CEO Tim Cook warned that tariffs would cost Apple about $900 million in the current quarter that runs through June. To mitigate the effects, Cook said a majority of iPhones sold in the U.S. this quarter will come from India instead of China, with iPad, Mac, Apple Watch, and other products coming mostly from Vietnam.

However, the higher-end (and more profitable) Pro and Pro Max iPhone models will continue to primarily ship from China, WSJ reported. Apple’s factories in India are not yet capable of mass producing those models at the same scale as their Chinese counterparts can, the report said.

-Andrew Kessel

Next Technology Jumps After Announcing Bitcoin Holdings

May 12, 2025 10:34 AM EDT

Shares of Next Technology Holding (NXTT) took off for a second straight session Monday after the software services provider and bitcoin buyer reported its holdings of the cryptocurrency jumped.

Next Technology reported in a regulatory filing last week that it held 5,833 bitcoin, 5,000 of which it bought since the end of last year. It said the value of its bitcoin portfolio as of March 31 was $481.7 million, while it paid $183.1 million to purchase them.

The company noted that it sees its bitcoin investment “as long-term holdings” and expects to continue acquiring them. It added that it hasn’t “set any specific target” for the number of bitcoin it seeks to hold, and will “continue to monitor market conditions in determining whether to engage in additional financings” to make more purchases.

Next Technology explained that bitcoin “offers the opportunity for appreciation in value if its adoption increases and has the potential to serve as a hedge against inflation in the long-term.”

The news sent Next Technology shares soaring 661% on Friday, and the stock was up another 50% in early trading. They’ve also gotten a boost by the recent run-up of the price of bitcoin, which is trading above $104,000. Today’s move lifted the stock from negative to positive territory for 2025.

Another firm seeing its shares fly higher because of bitcoin-related news is healthcare provider Kindly MD (KDLY), whose stock is soaring nearly 500% Monday morning after it announced a merger with bitcoin-native holding company Nakamoto Holdings in order to start a bitcoin treasury strategy.  Nakamoto was founded by David Bailey, a key cryptocurrency advisor to President Donald Trump.

-Bill McColl

Tesla Levels to Watch After Three Weeks of Gains

May 12, 2025 09:51 AM EDT

Tesla (TSLA) shares surged in early trading after closing Friday at their highest level in more than two months, as the stock has gained ground in each of the last three weeks.

The stock started gaining traction late last month after CEO Elon Musk, during the company’s first quarter earnings call, said he would spend less time at the Department of Government Efficiency, or “DOGE,” and more time at his job at the company.

More recently, Tesla shares have gotten boost from optimism that the Trump administration could soften its stance on tariffs. Monday’s surge follows news over the weekend that the U.S. and China had agreed to pause most of the hefty tariffs that the countries had imposed on one another

Coming into Monday’s session, Tesla shares had recovered about 40% from last month’s low. However, the stock was still down 26% since the start of the year, due in part to concerns that Musk’s involvement with the Trump administration could be weighing on the automaker’s sales.

Tesla shares forged a triple bottom on the chart between early March and late April, setting the stage for a bullish reversal.

Indeed, the stock confirmed the pattern in Friday’s trading session, breaking out above the formation’s neckline and closing above the closely watched 200-day moving average (MA). Moreover, the relative strength index signals bullish price momentum and sits comfortably below overbought levels to provide ample room for further upside.

Investors should watch crucial overhead areas on Tesla’s chart around $360 and $430, while also monitoring key support levels near $289 and $225.

The stock was up more than 5% at around $315 shortly after the opening bell Monday.

Read the full technical analysis piece here.

-Timothy Smith

Major Indexes Poised to Open Sharply Higher

May 12, 2025 08:33 AM EDT

Futures tied to the Dow Jones Industrial Average were up 2.5%, or more than 1,000, points in recent trading.

S&P 500 futures rose 3%.

Nasdaq 100 futures soared 3.9%.