Wall Street's three major indexes rose sharply on Monday with the S&P 500 marking its highest level since early March as a U.S.-China agreement to temporarily slash tariffs brought some hopes for the easing of a global trade war, which U.S. President Donald Trump ignited in early April.

The S&P 500, the Nasdaq and the Dow all boasted their biggest single-day percentage gains since April 9 and the S&P broke above its 200-day moving average for the first time since late March.

Market Snapshot

The Dow Jones Industrial Average rose 1,160.72 points, or 2.81%, to 42,410.10 for its highest close since March 26. The S&P 500 gained 184.28 points, or 3.26%, to finish at 5,844.19, its highest close since March 3 while the Nasdaq Compositegained 779.43 points, or 4.35%, to 18,708.34 for its highest finish since February 28.

Market Movers

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 Motors 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%.

Shares of microcap healthcare company Kindly MD, Inc. skyrocketed 251% Monday after the company announced a merger with Nakamoto Holdings, a new Bitcoin investment firm led by Trump campaign adviser David Bailey. Meanwhile, American Bitcoin, a Bitcoin mining company co-founded by Eric Trump earlier this year, announced on Monday it was merging with microcap Gryphon Digital Mining . The combined company is expected to trade on the Nasdaq. Gyphon’s stock leapt 173% on Monday following the news. American Bitcoin’s current parent company Hut 8 also surged 14%.

$RH(RH)$, 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 Mining , 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 Inc 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.

Market News

Trump executive order demands pharma industry price cuts

U.S. President Donald Trump signed a wide-reaching executive order on Monday directing drugmakers to lower the prices of their medicines to align with what other countries pay that analysts and legal experts said would be difficult to implement.

The order gives drugmakers price targets in the next 30 days, and will take further action to lower prices if those companies do not make "significant progress" toward those goals.

Tom Lee sees a 'V-shaped' recovery

“Equities have staged a V-shaped recovery, which is what we argued would take place as this is the pattern after a waterfall decline in stocks,” Fundstrat co-founder Tom Lee wrote to clients in a Monday note. “And despite the continued improving news flow, investors remain skeptical, which is positive.”