From Nasdaq: 2025-05-13 06:43:00

US and China trade talks, previously at a standstill, have made unexpected progress, leading to a market rally. Both countries agreed to reduce tariffs on each other’s goods for the next 90 days, bringing much-needed certainty to Wall Street. The Nasdaq and S&P 500 surged, erasing previous losses from earlier this year.

President Trump announced a new executive order to implement a “Most Favored Nation’s Policy” for drug prices, causing biotech ETFs and pharmaceutical stocks to dip. OpenAI, parent company of Chat-GPT, is planning to transition to a public benefit corporation to prepare for an eventual IPO, benefiting Microsoft as a major shareholder.

Geopolitical developments also contributed to positive market sentiment, with Ukraine and Russia, India and Pakistan, and Israel seeing progress in resolving conflicts. President Trump plans to visit the Middle East soon. Overall, the unexpected breakthrough in US-China trade relations is driving US equity markets higher today.

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Read more at Nasdaq: Zacks Investment Ideas feature highlights: Alibaba, JD.com, SPDR S&P Biotech ETF, Merck and Microsoft