The Dow Jones Industrial Average soared Monday after trade talks with China resulted in tariffs being temporarily slashed, with President Donald Trump boasting about the progress. The move boosted Big Tech stocks like Apple, Tesla, Nvidia and Amazon.com. Some stocks cleared IBD-style entry points on the stock market today, including Alibaba, while a Bill Ackman play jumped.
The Dow exploded out of the gate, and ended near session highs. The 30-stock Dow industrials gained almost 1,161 points, or 2.8%. Bill Ackman stock Nike shined on the much-watched index with a gain of 7.3%. This allowed it to clear the key 10-week moving average, though it lags the falling 50-day line.
The hedge fund manager's firm Pershing Square Capital Management has nearly 19 million shares in the sportswear company. Buying here could be overly aggressive, though. Nike is still trading well beneath its long-term 200-day moving average, which has been sliding lower since September 2023.
Fellow Dow Jones blue chip index member Merck also outperformed with a gain of 5.8%, while 3M rose 5.4%. Coca-Cola lagged, but ended off lows, as it fell 1.4%.
The Nasdaq composite fared even better than the Dow, surging almost 4.4% to close at 18,708. The Nasdaq peaked on Dec. 16 at 20,204. Trade Desk outperformed here, soaring 11.8%. Microchip Technology was not far behind with a lift of 10.2%. Nasdaq-listed utility stock Xcel Energy struggled, falling 4%.
Stock Market Today: Technology, Consumer Discretionary Shine
The S&P 500 pole-vaulted 3.3% Monday. Finishing the session at 5,844, it is now down less than 1% in 2025. Nearly all of the benchmark index's sectors were higher, with technology and consumer discretionary out in front. Only utilities, a defensive area in the stock market, ended lower on a risk-on day for the market.
There were some extremely bullish moves on the benchmark index. NRG Energy rocketed 26.2% on news it is to acquire a "premier power portfolio" from LS Power for $12 billion. Stanley Black & Decker nailed down a gain of 15.7%. Zebra Technologies, a maker of enterprise systems for managing inventory and assets, soared above its 50-day moving average with a gain of 12.5%.
There were still some laggards, though. CME Group dipped 4.8% after a solid run-up since February and a nice test of the 50-day line in April, while health insurance stock Cigna dropped 5.3%. Gold stock Newmont struggled, falling 5.9% as the precious metal itself skidded 3.2% to just over $3,200 per ounce.
Outside Dow Jones: Small Caps Shine, IBD 50 Gains
Volume exploded higher on both the New York Stock Exchange and the Nasdaq vs. Friday, according to preliminary data.
The Russell 2000 index also attended the party, jumping 3.5%. The index has now blasted away from its 50-day moving average but remains below its 200-day line.
Growth stocks also prospered, with the Innovator IBD 50 exchange traded fund rallying into the close to gain nearly 2%. Its loss for the year now sits at 1.2%.
Treasury yields ended higher across the board. The 10-year Treasury note popped 8 basis points to 4.45%, according to Cboe data, while the 2-year jumped 12 basis point to 4%.
Stock Market Today: Palantir Eyes Entry
One of the most closely watched stocks among retail investors is Palantir Technologies, which gained 1% today.
It has now formed a a new cup-with-handle base. The ideal buy point is 125.26, MarketSurge analysis shows.
However there are some caveats to bear in mind. This is a fourth-stage pattern for the data analysis stock, which is not ideal.
In addition, it currently sits around 25% above its 50-day moving average. This means it is quite extended, which raises the risk of a pullback.
In its favor, it has a best-possible IBD Composite Rating of 99. Both earnings and technical performance are excellent.
It is currently among the top 1% of stocks in terms of price performance over the past 12 months. It is also up around 56% so far in 2025. This easily bests the benchmark S&P 500's performance.
Big Money is also increasing its holding of the stock, with its Accumulation/Distribution Rating sitting at B+. In total, 35% of shares are held by funds.
Palantir is currently on the IBD Leaderboard Watchlist.
Magnificent 7: Amazon, Meta, Tesla Shine
It has been a tough year so far for Magnificent Seven investors. However, they were rewarded with powerful action on Monday.
The much-vaunted group of stocks was rallying, with Amazon leading the way as it vaulted 8.1%. It remains in a three-month consolidation with a 242.52 entry point. But aggressive investors could have used today's move above its 200-day moving average as a buy trigger.
Meta Platforms was not far behind as it rose 7.9%. The powerful move means it now sits clear of its short-term and major moving averages.
Tesla also flexed its muscles as it rose 6.8%. The EV stock gapped up away from its 200-day moving average and is now up 12.8% in May.
Apple and Nvidia also shined, rising 6.2% and 5.4%, respectively. The former stock is meeting resistance at the 50-day moving average while Nvidia is approaching the 200-day line.
President Donald Trump said he had talked to Apple Chief Executive Tim Cook following the tariff progress, and said "He's going to be building a lot of plants in the United States for Apple."
Google parent Alphabet and Microsoft made more modest gains, rising 3.7% and 2.4%, respectively.
3:16 p.m. ET
Trump Makes China Boast; Tariffs Help Rake In $16.3 Billion
President Donald Trump struck an enthusiastic tone following the trade progress made with China over the weekend, saying a "total reset" in relations has been achieved. He also boasted that the "best part of the deal" is that the communist country had "agreed to open itself up to American business."
China will not just reduce tariffs, Trump said, but also agreed to "suspend and remove all of its non-monetary barriers" on trade.
While the 20% fentanyl issue-contingent tariff remains for now, he said that they have agreed to prevent the potent opioid from reaching American shores. If they follow through, Trump says they will save "hundreds of billions of dollars in tariffs." The chemicals used to make fentanyl are mainly sourced from China.
Trump also teased potential direct contact with counterpart Xi Jinping. He said he will talk to the Chinese president "maybe at the end of the week."
The president also said he does not expect tariffs on Chinese imports to return to the 145% level following the conclusion of the 90-day pause. However, he could ramp up tariffs again if talks do not make progress.
Meanwhile, U.S. Treasury reported it collected a monthly record of $16.3 billion in custom duties in April as tariffs on imported goods rose sharply. This was up $7.6 billion on the prior month.
New tariffs take about a month to show up in the government's accounting, according to the Wall Street Journal.
Stock Market Today: More Issues Test Buy Points
Breakout action was extremely bullish Monday, with even more equities testing potential entries.
Tecnoglass is in a buy zone after clearing a cup entry 86.99, of according to MarketSurge analysis. Despite a bullish gap at the start of Monday trading, TGLS remains in the 5% buy zone.
The fact this is a fourth-stage pattern is a negative. However, the relative strength line is hitting fresh heights.
Overall performance is excellent, with its IBD Composite Rating coming in at 96 out of 99.
Earnings have grown by an average of 27% over the past three quarters. They are also accelerating.
Institutional ownership is very high, with 71% of shares currently being held by funds, according to MarketSurge data.
Video game play Roblox is flirting with a cup-with-handle entry of 74.24.
This is an early-stage base, a plus. It also reported earnings May 1, meaning a risk event is off the horizon. While the firm lost 32 cents per share, this was better than last year and a narrower loss than analysts expected.
RBLX hosts an excellent 97 Relative Strength Rating on a scale of 1 to 99.
1:45 p.m. ET
Stock Market Today: Bitcoin Plays Power Up
A number of bitcoin plays were moving higher even as the cryptocurrency itself fell.
Bitcoin has been performing well in recent weeks but was backing off recent highs. The cryptocurrency now sits just under the $103,000 level, according to CoinDesk. The digital currency is mildly off its 24-hour high of $105,541.83.
The iShares Bitcoin Trust ETF and the ARK 21Shares Bitcoin ETF were each down less than 1% on the stock market today.
However, cryptocurrency exchange play Coinbase Global surged, rising 6%. It is pulling away from its 50-day moving average but is below its 200-day line, according to MarketSurge analysis. It tested an aggressive alternate entry of 211.62
Strategy, formerly known as MicroStrategy, fell almost 2%. However, it is continuing to trade above its short-term and major moving averages. It has generally been progressing well since finding support at the 200-day line in early April.
Bitcoin miner Hut 8, previously a member of the IBD 50 list of leading growth stocks, soared more than 13%. It pulled away from its 50-day line; its next task will be to mount the 200-day moving average. Rival mining play Riot Platforms rose more than 3%.
Mara, formerly known as Marathon Digital, gained ground on the 200-day moving average amid a gain of around 1%.
Outside Dow Jones: More Stocks Clear Entries
The bullish action was leading to a plethora of breakouts. These included Amer Sports, which is a previous member of the IBD Leaderboard Watchlist.
It briefly cleared a double-bottom base buy point of 29.76. Despite rising more than 8% in afternoon trade, it has now slipped slightly below this level.
Strong, but not ideal, performance is reflected in its IBD Composite Rating of 89 out of 99.
The sporting goods equipment maker's move came in high volume and led to it being dubbed the IBD Stock of the Day.
Meanwhile, Chinese specialty finance play Qifu Technology has cleared a weekly chart's cup-with-handle entry of 44.28, MarketSurge analysis shows. The stock rose nearly 7% and hit a six-week high.
The fact that this is an early-stage pattern is a bonus, as these are more likely to net good gains, IBD research has found. However, earnings are due in the next seven days, which adds risk.
12:29 p.m. ET
Stock Market Today: Pharma Stocks Fight Back After This
Pharmaceutical plays battled back after President Trump signed an executive order to reduce the amount the government pays for drugs. They will in the future be tied to lower prices abroad.
"We are going to pay the lowest price there is in the world," Trump said during his Monday media conference. "We will get whoever is paying the lowest price, that's the price that we're going to get."
In a Truth Social post earlier in the day Trump claimed this could cut the cost of prescription drugs "almost immediately, by 30% to 80%." During his morning appearance he added they could fall by as much as 90%.
The exact details of which drugs will be affected have yet to emerge. A similar measure he pushed during his first term applied to Medicare Part B drugs, but this move could be broader. However, this could impact the burgeoning weight loss-related boom for GLP-1 drugs such as Novo Nordisk's Ozempic.
Prescription drug prices in the U.S. are often 250% higher, or more, than in other developed countries such as the U.K. and Germany.
Novo Nordisk reversed higher to gain more than 2% while Eli Lilly also battled out of negative territory to gain more than 2%.
Amgen rose more than 3%, Pfizer also rebounded to a gain of more than 3% and Johnson & Johnson came out of the red to notch a fractional gain.
10:47 a.m. ET
Bessent Says This On China Amid Tariff Moves
Stocks rallied furiously after Treasury Secretary Scott Bessent made progress with Chinese counterparts during key trade talks in Geneva, Switzerland, over the weekend.
Going into the meeting, levies were eye-wateringly high between the world's two largest economies. They sat at 145% for Chinese goods imported into the U.S. and 125% for American goods going into China. However, these are now to be slashed for 90 days. This is just the first step, however, with more talks to come.
"We want more balanced trade, and I think both sides are committed to achieving that. Neither side wants a decoupling," Bessent said.
The Trump administration and the Chinese government have made significant cuts to tariffs. U.S. levies on Chinese imports will fall from 145% to 30%, while Chinese charges fall to 10% from 125%.
The reason American levies remain above 10% is the 20% tariff which was enacted due to the fentanyl crisis. This will remain in place for the foreseeable future.
"The 20% fentanyl tariffs went on in February. So if we were going to see any kind of economic downside from that, it would have already been apparent [but] the economic data has surprised on the upside," Bessent said.
Stock Market Today: Alibaba Stock Clears Entry
A number of stocks were clearing entries amid the bullish early action. China e-commerce play Alibaba made a noteworthy move as it moved above a weekly chart cup-with-handle entry of 129.73, MarketSurge analysis shows. This is a midstage pattern.
Alibaba is pulling away from its 50-day and 200-day moving averages, a positive sign. It also has a strong IBD Composite Rating of 94 out of a best-possible 99.
It was among China stocks making meaty gains on the stock market today. Temu parent PDD popped nearly 7%, JD.com rose nearly 6% and Baidu was up nearly 4%.
Stock Yards Bancorp is in a buy zone after moving above a double-bottom base buy point of 77.81.
It is in the top 9% of issues in terms of price performance over the past 12 months and is up more than 9% for the year. It also has a high EPS Rating of 92.
Please follow Michael Larkin on X at @IBD_MLarkin for more analysis of growth stocks.
