Live Nasdaq Composite: China Trade Talk Success Unleashes Market Bulls

Investing

Gerelyn Terzo

Published: May 12, 2025 9:42 am

Last Updated: May 12, 2025 2:34 pm

Key Points

Stocks are soaring on a trade agreement between the U.S. and China that will result in tariff relief for several months.
Each of the Magnificent 7 stocks is participating in today’s gains. The Nasdaq Composite is leading the markets higher based on percentage gains.
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Live Updates

Live Coverage Has Ended

Wall Street Warning

2:35 pm by Gerelyn Terzo

Goldman Sachs believes that the toll from the tariff war will be greater than the markets are letting on despite the trade agreement between the Trump administration and China. While the stock market is rallying, Goldman Sachs published a report stating:

“The large reduction in the U.S. tariff rate on China should only have a limited impact on the overall U.S. effective tariff rate. After accounting for a reduction of that magnitude, the full set of U.S. tariffs would still be considerably higher and broader than expected by markets at the start of the year.”

Nasdaq Composite Widens Lead

2:09 pm by Gerelyn Terzo

The Nasdaq Composite has widened it lead in today’s tariff relief rally in which technology stocks are out front. As of mid-afternoon trading, the Nasdaq Composite is leading the stock market higher with a 4% advance, trimming its year-to-date decline to 3.2%. Mag 7 stocks are soaring, including gains of between 5% and 8% for Apple (Nasdaq: AAPL), Nvidia (Nasdaq: NVDA) and Amazon (Nasdaq: AMZN).

Markets Hold Gains

12:02 pm by Gerelyn Terzo

The stock market rally has legs, with all three of the major stock market averages maintaining their ground. The Dow Jones Industrial Average is up 2%, while the Nasdaq Composite and S&P 500 are advancing 3.4% and 2.4%, respectively. This week’s CPI print will reveal the latest inflation data, and the markets will be waiting to see if the trend of declining consumer prices will continue. Technology stocks are a major driver of today’s stock market rally as they experience much-needed China tariff relief. Auto stocks are also gaining for the same reason.

Tech Stock Roundup

10:40 am by Gerelyn Terzo

China is a key trade partner for technology stocks, making the trade agreement that much more important for them. A big percentage of Amazon’s (Nasdaq; AMZN) and Apple’s (Nasdaq: AAPL) products are made in China, while EV maker Tesla (Nasdaq: TSLA) also does a great deal of business there. Today’s rally has sent Tesla’s market cap back above the $1 trillion threshold. The semiconductor sector has had a target on its back throughout the trade war and the SOX index is rising 6% today.

Market Movers

9:43 am by Gerelyn Terzo

NRG Energy (NYSE: NRG) is up 14% today after beating Q1 earnings estimates.

Newmont Mining (NYSE: NEM) is falling 5% on a sinking gold price in response to the U.S. and China trade talk success.

J.B. Hunt Transport (Nasdaq: JBHT) is rising 10.2% today in a potentially strong sign for the economy.

This article will be updated throughout the day, so check back often for more daily updates.

A China-U.S. trade agreement has sent the markets soaring to start the week, including a 1,000-point rally in the Dow Jones Industrial Average. Technology stocks are among the top performers, sending the Nasdaq Composite soaring by 3.8% and the S&P 500 higher by 2.7%. Each of the Magnificent Seven stocks is participating in today’s rally, while most sectors of the economy are seeing green.

After meeting over the weekend to hammer out a deal, the White House and Beijing officials have reached an agreement to lower the escalated tariffs, giving the markets runway for gains that have been withheld throughout the trade war. Treasury Secretary Scott Bessent described a strategic decoupling from basic items made by China, agreeing to suspend tariffs for 90 days with the nation except for a wider-based 10% levy threshold.

KindlyMD (Nasdaq: KDLY) is up a staggering 573% on this Merger Monday. The company announced a business combination with bitcoin investment firm Nakamoto, a company founded by President Trump’s crypto advisor David Bailey.

Here’s a look at the performance as of morning trading:

Dow Jones Industrial Average: Up 969.45 (+2.3%)
Nasdaq Composite: Up 667.89 (+3.8%)
S&P 500: Up 151.51 (+2.7%)

Wall Street Analyst Moves

UBS has reiterated its “buy” rating on Nvidia (Nasdaq: NVDA) stock ahead of the AI darling’s quarterly earnings report but lowered the price target to $175 from $180 per share.

Jefferies has upgraded shares of hotel stock Marriott (Nasdaq: MAR) to “buy” from “hold,” citing strength in its business model that could unlock gains in the share price.

BofA has reiterated Amazon (Nasdaq: AMZN) as a “buy” rating, pointing to its robotics business as a positive catalyst for growth.

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