Dow Jones futures, along with S&P 500 futures and Nasdaq 100 futures, traded lower ahead of Tuesday's open. The stock market surged Monday after President Donald Trump and the U.S. reached a trade deal with China to slash tariff rates, at least temporarily.
Amazon, Apple, Nvidia and Tesla were big winners on the stock market today, as the Dow Jones Industrial Average surged more than 1,100 points.
Amazon stock jumped more than 8% Monday, bullishly regaining the 200-day moving average for the first time since March 27. Shares of the e-commerce giant edged lower in after-hours trading.
Shares of Apple surged 6.3%, closing right at the 50-day line. That's a key resistance level to watch for the iPhone maker. Apple stock was little changed late.
Nvidia moved up 5.4%, still below the 200-day line but its highest close since late February. But Nvidia stock eased 0.2% in extended trading.
Finally, Tesla raced 5.7% higher, extending a win streak to four sessions. Shares remain still nearly 35% off their record high 488.54, reached on Dec. 18. Tesla stock headed down 0.1% in late trading.
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Trump-China Trade Deal
The U.S. and China will temporarily slash tariff rates on each other in a dramatic de-escalation of a trade war between the world's two largest economies.
The U.S. will cut the 145% tariff on most Chinese imports to 30% by May 14, including a 20% tariff tied to fentanyl. China will cut its 125% tariff on U.S. goods to 10%. The U.S. tariff cuts don't apply to Trump's sectoral duties on steel, aluminum and more.
"We are in agreement that neither side wants to decouple," Treasury Secretary Scott Bessent said Monday. He added that the U.S. and China "had a very robust and productive discussion" on addressing Trump's fentanyl concerns. Also he said talks might lead to China buy more American-made products.
While this week's focus is primarily on Trump-China trade deal news, other noteworthy releases include the consumer price and producer price indexes, along with U.S. retail sales data.
In stocks, key earnings reports this week include those from Sea Ltd., Warren Buffett fintech stock Nu , artificial intelligence play CoreWeave — a recent initial public offering — and Chinese e-commerce giant Alibaba.
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Dow Jones Futures Today: Oil Prices, Treasury Yields
On Monday, the Dow Jones Industrial Average rallied 2.8%, or 1,160 points, while the S&P 500 gained 3.3% and the Nasdaq advanced 4.4%.
Ahead of Tuesday's opening bell, Dow Jones futures dropped 0.3%, while S&P 500 futures fell 0.4%. Tech-heavy Nasdaq 100 futures lost 0.5%. Remember that overnight action in Dow Jones futures and elsewhere doesn't necessarily translate into actual trading in the next regular stock market session.
On Monday, the 10-year U.S. Treasury yield ticked higher to 4.45%. And oil prices climbed, as West Texas intermediate futures settled around $62 a barrel.
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Stocks To Watch Include Palantir, Roblox And Amer Sports
Among the best stocks to watch Monday, IBD Leaderboard watch list stock Palantir Technologies is just below a 125.25 buy point in a cup with handle, according to IBD MarketSurge.
Meanwhile, IBD SwingTrader stock Roblox is attempting to break out past a 74.24 cup-with-handle entry.
Finally, IBD Stock Of The Day Amer Sports leapt 11.3%, topping a 29.76 buy point in a double bottom.
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What To Do Now After Dow Jones Surges
Following Monday's bullish stock market action, now is an important time to read IBD's The Big Picture column. With the stock market in rally mode, investors should be methodically putting their capital to work by buying strong breakouts past correct entries. Check out the latest Big Picture column for today's updated recommended exposure level.
On Monday's "IBD Live" show, the team discussed the current trading conditions of the stock market action.
An essential resource for daily breakouts is IBD MarketSurge's "Breaking Out Today" list. It shows MarketSurge Growth 250 stocks that are breaking out past buy points. Meanwhile, the MarketSurge "Near Pivot" list shows more stocks nearing buy points in bases.
To find more stock ideas, check IBD Stock Lists like the IBD 50, Big Cap 20 and Stocks Near A Buy Zone. These features identify bullish patterns and buy points and are available to check every day.
Be sure to follow Scott Lehtonen on X/Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
