Michael M. Santiago/Getty Images U.S. stock indexes rallied Monday, lifted by trade-policy news.

Key Takeaways

The S&P 500 rose 3.3% on Monday, May 12, 2025, as investors reviewed a trade deal between the U.S. and China that significantly reduces tariffs for 90 days as negotiations continue. NRG Energy shares soared as the firm’s earnings raced past estimates and it announced an acquisition of natural gas assets. Cigna Group and CVS Health fall as investors worry that President Donald Trump’s executive order on prescription drug prices will harm companies providing pharmacy benefit management services.

Major U.S. equities indexes surged Monday as investors cheered the news of a trade deal between the U.S. and China that would see tariffs reduced for a 90-day period while negotiations continue.

The S&P 500 jumped by 3.3% as traders evaluated the deal, which came after tariff announcements rattled markets and spiked consumer fears over inflation. The Dow Jones Industrial Average rose by about 1,160 points, rising 2.8%, while the Nasdaq soared by 4.4% as tech stocks that relied on trade with China benefited. Read Investopedia's full coverage of today's trading here.

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 were higher by nearly 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.

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.

Story Continues

Cigna Group (CI) fell by 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, fell 5.6% after it completed the purchase of a 90% majority stake in the RFQ-hub platform.

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