Shares of Gilead Sciences (GILD) are soaring 5% in pre-market trading on Monday, defying expectations as President Donald Trump announces plans to slash drug prices. The unexpected rally comes as a surprise to many investors, given the potential negative impact of price cuts on pharmaceutical companies' revenues.

President Trump declared on his social media platform that he would cut prescription drug prices by 59%, sending shockwaves through the pharmaceutical industry. The President is expected to sign an executive order later today to pursue a "most favored nation" pricing strategy, which would tie U.S. drug prices to lower prices paid in other developed countries. This move could potentially reshape the entire landscape of drug pricing in the United States.

Despite this seemingly bearish news for the sector, Gilead's stock is showing remarkable resilience. Analysts speculate that this could be due to several factors. First, investors might believe that Gilead's diverse portfolio and strong pipeline could help it weather potential price cuts better than its peers. Additionally, there may be skepticism about the feasibility or timeline of implementing such dramatic price reductions. Furthermore, Gilead might have specific products or ongoing developments that are exciting investors, offsetting concerns about broader industry pressures. As the day unfolds, market watchers will be keen to see if Gilead can maintain this surprising momentum and whether other pharmaceutical stocks will follow suit.