Track Markets Live NowMajor Indexes Rally on Trade Deal News
The stock market is experiencing a significant rally today, Monday, May 12, 2025, as investors react positively to a breakthrough in US-China trade relations. Futures indicated a strong opening, with Dow futures up by 808 points (1.95%), S&P 500 futures higher by 2.49%, and Nasdaq futures pointing to a 3.37% gain.
As of the market open, the major indexes are showing substantial gains, building on the momentum from futures trading. The Dow Jones Industrial Average is trading around 41,249.38, the S&P 500 near 5,659.91, and the Nasdaq Composite around 17,928.92.
US-China Tariff Agreement Drives Market Optimism
The primary catalyst for today’s market surge is the weekend announcement that the United States and China have agreed to temporarily reduce tariffs following negotiations in Switzerland. US Treasury Secretary Scott Bessent described the talks as “very productive,” revealing that both countries will cut “reciprocal” tariffs by 115% for a 90-day period.
This agreement brings US tariffs on Chinese goods down to 30% from the previous 145% level imposed by President Donald Trump last month. Similarly, Chinese tariffs on US imports will decrease to 10% from the retaliatory 125% duties Beijing had implemented.
Commerce Secretary Howard Lutnick noted that the 10% baseline tariff rate on imports from other countries is likely to “be in place for the foreseeable future,” echoing President Trump’s recent statements on trade policy.
Major Stocks in Focus Today
Among the “Magnificent Seven” stocks, several are showing notable movements today:
– Tesla (TSLA) is continuing its recovery trend, building on Friday’s 3.8% gain, though the electric vehicle manufacturer remains approximately 40% below its December 2023 all-time high of $488.53.
– Nvidia (NVDA) is extending Friday’s 3% gain as it attempts to move decisively above its 50-day moving average for the first time since February. Investors are also looking ahead to Nvidia’s upcoming earnings report scheduled for May 27.
– Apple (AAPL) is attempting to recover after tumbling nearly 4% on Friday following its earnings report, which showed better-than-expected results but raised concerns about tariff impacts on hardware sales.
– Microsoft (MSFT) is building on Friday’s 2.8% gain after recently crushing Wall Street’s targets for its fiscal third quarter and providing strong guidance.
Upcoming Market Events This Week
Investors will be closely monitoring several key economic reports and corporate earnings announcements this week:
– The Consumer Price Index (CPI) reading for April is scheduled for release on Tuesday morning, providing crucial inflation data.
– Retail sales figures and the Producer Price Index (PPI) are set for release on Thursday, offering additional insights into economic conditions and inflation trends.
– Notable earnings reports expected this week include JD.com (JD) today, Cisco Systems (CSCO) on Tuesday, and Walmart (WMT), Alibaba Group (BABA), and Applied Materials (AMAT) on Thursday.
What to Watch Going Forward
Market analysts will be closely monitoring how the temporary tariff reductions impact corporate earnings and supply chains. Additionally, investors should watch for President Trump’s expected executive order on prescription drug pricing, which he announced will be signed today and could potentially reduce pharmaceutical prices by 30% to 80%.
With the major indexes rebounding from last week’s losses, market participants will be looking for signs that this rally has staying power, particularly as more economic data becomes available throughout the week.