The New York stock market experienced a broad-based rally on Monday.
M7 big tech stocks remarkably re-emerged at the forefront of the market, with Amazon shares leaping more than 8%.
Market sentiment was buoyed by the U.S. and China’s major agreement over the weekend to lower tariffs, suggesting a potential end to the trade tensions initiated by U.S. President Donald Trump.
Nasdaq Soars 4.4%
All three major indices posted substantial gains.
The Dow Jones Industrial Average surged 1,160.72 points (2.81%) to close at 42,410.10, while the S&P 500 jumped 184.28 points (3.26%) to reach 5,844.19.
The Nasdaq climbed 779.43 points (4.35%) to finish at 18,708.34.
The CBOE Volatility Index (VIX), Wall Street’s fear gauge, dipped below the baseline of 20, plummeting 3.51 points (16.03%) to 18.39.
Amazon Surges 8%
The M7 big tech stocks led the day’s rally.
Six of these stocks rose around 6%, and even the weakest performer gained 2.4%.
Market leader Microsoft (MS) climbed 10.53 USD (2.40%) to close at 449.26 USD, marking the smallest gain among the M7.
Amazon, which relies heavily on Chinese supply chains for its e-commerce platform, saw its stock price soar 15.58 USD (8.07%) to 208.64 USD, topping the M7 gains.
Meta Platforms followed closely, rising 46.94 USD (7.92%) to 639.43 USD, followed by Tesla jumping 20.12 USD (6.75%) to 318.38 USD.
Apple, also dependent on Chinese supply chains, surged 12.52 USD (6.31%) to 210.79 USD. Nvidia, with its high exposure to Chinese exports, climbed 6.35 USD (5.44%) to 123.00 USD.
Alphabet gained 5.20 USD (3.37%) to close at 159.58 USD.
Chinese ADRs rally
Chinese stocks listed on U.S. exchanges saw their American Depositary Receipts (ADRs) surge, reflecting renewed optimism about U.S.-China relations.
Alibaba jumped 7.22 USD (5.76%) to 132.55 USD, while JD.com rose 2.19 USD (6.47%) to 36.05 USD.
Baidu gained 4.41 USD (5.08%) to 91.27 USD, and Pinduoduo, Temu’s parent company, leaped 6.73 USD (6.14%) to 116.38 USD.
Pharmaceutical stocks advance
Trump’s executive order allowing U.S. pharmaceutical companies to lower U.S. drug prices and charge higher prices in contracts with foreign governments boosted the sector.
Eli Lilly, maker of the weight-loss drug Zepbound, rose 21.00 USD (2.86%) to 755.57 USD, while Pfizer gained 0.81 USD (3.64%) to 23.09 USD.
Merck climbed 4.46 USD (5.87%) to 80.43 USD, and Bristol-Myers Squibb added 1.73 USD (3.72%) to reach 48.18 USD.
However, pharmacy benefit managers (PBMs) saw their stocks plummet after Trump plans to eliminate intermediate distribution steps.
Cigna Group fell 17.72 USD (5.31%) to 315.74 USD, and CVS Health dropped 2.16 USD (3.23%) to 64.81 USD.
