Nasdaq 100 and S&P500: Amazon, Nvidia Power Indices Higher in Bullish Session

Wall Street Surges as U.S.-China Tariff Truce Reignites Bullish Sentiment

U.S. stocks kicked off the week with a sharp rally after Washington and Beijing agreed to cut tariffs on each other’s imports, offering a temporary reprieve in the trade war that has weighed heavily on markets for weeks.

The Dow Jones Industrial Average jumped over 1,000 points at the open, supported by broad-based buying across sectors. Treasury Secretary Scott Bessent called the weekend talks “productive,” while traders responded positively to the 90-day tariff reduction window, which slashes U.S. tariffs on Chinese goods from 145% to 30% and China’s duties on U.S. goods from 125% to 10%.

The CBOE Volatility Index dropped below 20 for the first time since March, signaling a notable decline in risk aversion.

Technology and Consumer Discretionary Lead Index Gains

The S&P 500 and Nasdaq Composite both surged over 3%, with gains led by technology and consumer discretionary stocks—sectors most exposed to global trade.

The S&P 500 Tech Index jumped 3.7%, driven by strong rebounds in Apple (+7%), Amazon (+8%), and Nvidia (+4%). The consumer discretionary index soared 5.5%, with RH up 17%, Best Buy up 10%, and Five Below climbing 11%.

Tesla rebounded 7% following recent concerns about China sales, while Meta and Dell added over 5% and 8% respectively. The rally helped push the S&P 500 closer to erasing year-to-date losses after nearly dipping into bear market territory in April.

Energy and Materials Jump as Risk Appetite Returns

Energy stocks climbed 3.8%, buoyed by rising oil prices and NRG Energy’s $12 billion deal to acquire gas generation assets from LS Power. NRG shares surged nearly 9% on the announcement. The materials sector rose 2.8%, reflecting renewed optimism for global demand as trade uncertainty receded.

Industrials also rose 2.5%, with broad strength across transport and equipment makers. Financials added 2%, while real estate and communication services each gained over 0.7% and 2.7% respectively.

Pharma Stocks Slide on Drug Price Executive Order

Health care stocks lagged the broader rally, with pharmaceutical names under pressure following President Trump’s comments on a forthcoming executive order to slash drug prices by as much as 80%. Merck, Johnson & Johnson, and Pfizer each dropped more than 2%, while Teva and AbbVie fell by 5% and 3%, respectively. The overall health care index managed just a 0.8% gain.

Market Outlook: Inflation Data in Focus

While the tariff truce spurred a relief rally, traders remain cautious with inflation data due this week. The April Consumer Price Index report on Tuesday and Thursday’s retail sales and Producer Price Index figures will be critical in shaping expectations for future Fed moves. With volatility easing and tariff pressures subsiding, markets are now bracing for economic data to set the next direction.

More Information in our Economic Calendar.