Editor
Investors cheered a double dose of good news Monday as tech and pharma stocks rebounded sharply, sending markets higher.
Markets saw a broad-based rally to start the week as investors reacted positively to two major developments: a temporary U.S.-China tariff truce and a less-severe-than-expected executive order on drug pricing. The day’s biggest gainers included major players in tech, pharmaceuticals, retail, and energy.
Pharma Stocks Rebound After Initial Jitters
Pharmaceutical companies saw a midday turnaround after early losses, thanks to clarification on a new White House executive order aimed at lowering drug costs.
While the initial announcement raised concerns across the health-care sector, investors breathed a sigh of relief once details emerged. The directive calls for a government-backed platform allowing consumers to buy medications directly from manufacturers—a change seen as disruptive mainly to middlemen, not drugmakers.
Merck led the pack with a 5% gain, while Pfizer, Eli Lilly, and Bristol-Myers Squibb each added over 2%. However, CVS Health fell 5%, as the pharmacy chain may lose ground if more customers bypass retail outlets.
“Pharma feared a storm, but it looks more like a drizzle,” said Lisa Morgan, an analyst at Baird Equity Research. “The direct-to-consumer model hits retailers more than producers.”
Tech Titans and Semiconductors Surge on Trade News
Wall Street’s heavyweights in technology also enjoyed strong gains following the announcement that the U.S. and China will pause most tariffs for 90 days. This gave a major lift to companies with significant exposure to Chinese markets or supply chains.
Amazon and Tesla both jumped around 7%—a welcome turnaround after recent sluggish sales in China. Apple, which assembles most of its iPhones in the country, gained over 5%. Meta Platforms also rose 7%, reflecting renewed investor optimism in global tech demand.
Semiconductor makers joined the rally, with Nvidia, Broadcom, and ON Semiconductor climbing on the news. Chipmakers are particularly sensitive to geopolitical disruptions, as they rely heavily on cross-border supply chains.
“This is exactly the kind of macro backdrop tech bulls have been waiting for,” said Javier Reyes, a portfolio strategist with Luma Wealth.
Chinese Stocks Rally on Eased Tensions
U.S.-listed Chinese companies rode the wave of relief sparked by the trade agreement. Shares of e-commerce giants Alibaba and PDD Holdings soared more than 6%, while JD.com and Baidu followed closely behind.
The move reflects renewed confidence that the cooling of tensions between the world’s two largest economies could stabilize sales and growth prospects for Chinese firms operating in U.S. markets.
Retailers Pop as Tariff Fears Ease
Retail stocks—particularly those heavily reliant on Chinese imports—posted impressive gains.
Five Below and RH (formerly Restoration Hardware) both surged about 17%. Nike, Lululemon, and Estée Lauder added roughly 7%, while E.l.f Beauty and Williams-Sonoma gained nearly 8%. Best Buy climbed 5%.
“The pause in tariffs gives breathing room to retail margins,” said Emily Chan, an analyst at Bridgewater Markets. “This could help stabilize inventory costs ahead of the critical back-to-school and holiday seasons.”
Energy and Casino Stocks Get in on the Action
Energy firm NRG Energy rallied 23% after announcing a $12 billion acquisition of LS Power’s energy portfolio. The deal includes multiple natural gas power plants across nine states and is expected to close in early 2026.
Meanwhile, casino operators with strong ties to Asia also benefited from trade news. Las Vegas Sands rose nearly 6%, and Wynn Resorts jumped almost 8%. Both firms operate major casino properties in Macao, making them particularly sensitive to Chinese economic policy.
EdTech and Crypto Crossover: KindyMD Skyrockets
KindyMD—a lesser-known healthcare firm—stole headlines by soaring nearly 300% after announcing a merger with Nakamoto, a bitcoin investment company led by crypto advisor David Bailey.
While details remain limited, the move sparked curiosity and excitement among speculative investors betting on the convergence of healthcare and blockchain.
What’s Next for Markets?
Monday’s rally reflects investor optimism that global tensions may be easing—at least for now. Still, analysts caution that many of the headlines, including the U.S.-China deal, are temporary or tentative.
“Markets are running on hope right now,” said Reyes. “But hope, paired with strategic buying, is a powerful engine.”
All eyes will now turn to upcoming inflation data and earnings reports to determine whether this bullish momentum has staying power.
