On Monday, major U.S. equities indexes experienced a remarkable surge, buoyed by the positive news of a trade deal between the United States and China. Under the terms of this agreement, tariffs will be reduced for a 90 – day period as negotiations continue. This development brought relief to investors, who had been concerned about the market – rattling effects of previous tariff announcements and the associated spike in consumer fears over inflation.
The S&P 500 led the charge, jumping by an impressive 3.3% as traders analyzed the implications of the deal. Meanwhile, the Dow Jones Industrial Average climbed approximately 1,160 points, representing a 2.8% increase. The Nasdaq witnessed an even more significant rise of 4.4%, with tech stocks that rely on trade with China reaping the benefits. This rally was a clear indication of the market’s optimism regarding the new trade deal and its potential to ease trade tensions.
Several individual stocks also saw substantial gains. NRG Energy (NRG) emerged as a standout performer, soaring 26% and leading the S&P 500 higher. This was due to the company’s better – than – expected quarterly results and an optimistic earnings outlook. NRG’s adjusted earnings per share of $2.68 exceeded the consensus estimate of analysts polled by Visible Alpha by more than 60%. Additionally, the energy firm announced a significant $12 billion acquisition of natural gas assets from LS Power Equity Advisors, which will add 18 natural gas facilities across nine states.
Other companies, such as Stanley Black & Decker (SWK), also benefited from the trade deal. Its shares rose by nearly 16% as the tools maker was set to gain from the relaxed tariffs on China. Previously, the company had projected that tariffs would cut its full – year earnings per share by about 75 cents. Automation software maker Zebra Technologies (ZBRA) climbed more than 12% after unveiling new manufacturing automation products at a conference over the weekend. Trucking and shipping companies, which had been at risk of losing cargo volume due to a decline in China trade, also moved higher. Old Dominion Freight (ODFL) advanced 11%, and J.B. Hunt Transportation (JBHT) rose nearly 10%. Home improvement product maker Masco (MAS) rose more than 11% as investors were optimistic that the tariff negotiations would help the company avoid steep cost increases. These individual stock movements further emphasized the wide – ranging impact of the U.S.-China trade deal on different sectors of the U.S. economy.
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