By Joe Woelfel, Mackenzie Tatananni, and Connor Smith

Stocks rose sharply Monday after the U.S. and China said they had reached an agreement over the weekend to temporarily slash most tariffs on each other's goods.

These stocks were on the move:

Amazon.com jumped 8.1%, Meta Platforms climbed 7.9%, Apple rose 6.3%, and Nvidia gained 5.4% on the U.S.-China trade deal. Wedbush analyst Dan Ives said the agreement was "very bullish news for the tech trade as the supply chain concerns will now be significantly reduced." Ives said "new highs" for both the market and tech stocks are now possible this year.

Tesla rose 6.8%. The electric-vehicle maker's most productive car plant is located in China, and the country accounted for 22% of total revenue last year.

U.S.-listed shares of Chinese companies also rose. Alibaba gained 5.8%, JD.com was up 6.5%, Baidu rose 5.1%, and PDD Holdings was up 6.1%.

RH, the parent of Restoration Hardware, surged 16%. RH, on its earnings call in April, said it planned to leave China and move to Mexico-based manufacturing as part of a larger supply-chain restructuring. CEO Gary Friedman said at the time that he didn't believe the Trump tariffs would "completely stick."

Other consumer discretionary stocks also rose. Electronics retailer Best Buy and discount retailer Five Below were up 6.6% and 21%, respectively.

Eli Lilly rose 2.9%, Pfizer rose 3.6%, Merck was up 5.9%, and Bristol Myers Squibb rose 3.8%. The stocks had traded lower in the premarket session before President Donald Trump signed an executive order that would reduce the cost of drugs. The order itself could be a blessing in disguise for big pharma, fundamentally restructuring the industry in a way that hurts pharmacy-benefit managers, Barron's reported.

Newmont, the gold miner, fell 5.9% as the price of the precious metal dropped. The losses came as investors abandoned safe-haven assets in the wake of the U.S.-China announcement.

NRG Energy soared 26%. The company has agreed to acquire a portfolio of natural gas generation facilities from energy infrastructure company LS Power Equity Advisors. The deal has an enterprise value of $12 billion.

Earnings reports were expected after the closing bell Monday from DaVita, Archer Aviation, ZoomInfo Technologies, Rigetti Computing, and Hertz Global.

Reports are expected later in the week from Walmart, Alibaba, JD.com, Cisco Systems, Deere, Applied Materials, CoreWeave, Take-Two Interactive Software, On Holding, Venture Global, Nextracker, Dynatrace, Oklo, Intuitive Machines, and Cava.

Write to Joe Woelfel at joseph.woelfel@barrons.com and Mackenzie Tatananni at mackenzie.tatananni@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

May 12, 2025 16:17 ET (20:17 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.