Stocks surged after US-China trade truce, tech and energy stocks gained

From Nasdaq: 2025-05-12 18:21:00

Stock indexes surged on Monday, with the S&P 500, Dow Jones, and Nasdaq 100 closing up over 2%. The rally was fueled by the US-China agreement to cut tariffs. Gov. Kugler’s comments on tariffs’ impact on inflation and growth were negative. Focus this week will be on trade news and economic data releases.

Overseas markets settled higher, with Euro Stoxx 50, Shanghai Composite, and Nikkei Stock 225 posting gains. US Treasury yields rose as safe-haven demand for T-notes decreased. ECB is expected to cut rates in June. Energy stocks rose as WTI crude prices climbed, leading to gains in Phillips 66 and Valero Energy.

Tech stocks like Amazon, Meta Platforms, and Apple surged on the tariff cut news. Chip stocks also soared, with Microchip Technology and Lam Research posting strong gains. Travel and cruise stocks rallied, while trucking stocks benefited from easing trade tensions. NRG Energy led gainers in the S&P 500 after strong Q1 results.

Utility stocks and mining stocks faced pressure as T-note yields rose and gold prices fell. Healthcare stocks like Cigna Group and CVS Health declined after Trump proposed changes in drug industry practices. Earnings reports are due from companies like Everus Construction Group and Under Armour on 5/13/2025.



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