Shopify (SHOP) stock surged 13.58% on Monday, driven by two major factors: its upcoming inclusion in the Nasdaq 100 Index and a breakthrough in U.S.-China trade relations. The e-commerce giant's shares rallied as investors responded positively to these developments, which are expected to boost the company's visibility and ease concerns about global trade tensions.

Nasdaq announced that Shopify will be added to the prestigious Nasdaq-100 Index and the Nasdaq-100 Equal Weighted Index before the market opens on May 19. This inclusion places Shopify among the largest non-financial companies listed on the Nasdaq stock exchange, potentially attracting more attention from institutional investors and index-tracking funds. The news came on the heels of Shopify's strong first-quarter earnings report, further bolstering investor confidence in the company's growth trajectory.

Adding to the positive sentiment, the United States and China reached a deal to reduce tariffs, signaling a truce in the ongoing trade war. The U.S. will cut its additional tariffs on Chinese imports to 30% from 145%, while China will reduce its tariffs on U.S. imports to 10% from 125%. This development is particularly beneficial for Shopify, as many of its merchants rely on cross-border trade. The easing of trade tensions is expected to alleviate concerns about potential negative impacts on Shopify's business and the broader e-commerce sector.

As Shopify prepares to join the Nasdaq 100, investors will be closely watching its stock performance in the coming weeks. The company's recent strong financial results, coupled with these positive external factors, have created a bullish sentiment around the stock, potentially paving the way for further gains in the near term.