A ‘huge win’ for bulls: Markets soar on U.S.-China deal as Wall Street sees more upside

Image source: Adobe Stock

Market watchers have labeled the new U.S.-China deal to temporarily cut tariffs “better than expected,” “more workable” and even a “dream scenario” — and are expecting more near-term relief for investors. Under the deal, so-called reciprocal tariffs will drop from over 100% to 10% on both sides.

🗓️ What to expect in the markets this week: Inflation data, scheduled for Tuesday, may claim the spotlight early this week. But investors will also be evaluating the new trade deal between the US and China. Traders will also follow Thursday's remarks from Fed Chair Jerome Powell as he comes under pressure from President Donald Trump over the Fed's interest rate policy.

And retail sales data will be closely watched on Thursday, the same day as retailer Walmart reports earnings. Earnings releases from Cisco Systems, Alibaba Group, Deere & Co., Applied Materials, and video game maker Take-Two Interactive are among the week's other top scheduled results. Yahoo Finance reports.

🤖 Walgreens doubles down on prescription-filling robots to cut costs, free up pharmacists amid turnaround: As struggling drugstore chains work to regain their footing, Walgreens is doubling down on automation.

The company is expanding the number of retail stores served by its micro-fulfillment centers, which use robots to fill thousands of prescriptions for patients who take medications to manage or treat diabetes, high blood pressure and other conditions. CNBC reports.

🛒 The ‘most important consumer earnings report of the season’ lands this week: In April, when President Donald Trump escalated his trade war, Costco Wholesale Corp. at least, managed to put up a sales gain. Amazon.com Inc. said it hadn’t yet seen any impact from tariffs, while Mattel Inc. temporarily stopped trying to forecast their effects.

But on Thursday, we’ll get the most direct look yet at how shoppers are faring when big-box retail and e-commerce giant Walmart Inc. reports first-quarter results. MarketWatch reports.

📉 Pharmaceutical stocks tumble on Trump plan to cut US drug prices: Shares of pharmaceutical companies fell across the world after US President Donald Trump said he planned to order a cut in US prescription drug costs to bring them in line with other countries, prompting concern that profits will take a hit.

European drugmakers including Novo Nordisk A/S, AstraZeneca Plc and Roche Holding AG slid, missing out on a broader rally, while in Asia, the pharmaceuticals subgroup in Japan’s Topix Index posted its biggest one-day loss since August. Shares in US drugmakers were also weaker, with Eli Lilly & Co., Pfizer Inc., Bristol-Myers Squibb Co. and Merck & Co. Inc. all down in premarket trading in New York. Yahoo Finance reports.

📱 Apple considers raising iPhone prices, Apple is considering raising the prices of its fall iPhone lineup, a step it is seeking to couple with new features and design changes, the Wall Street Journal reported on Monday, citing people familiar with the matter. Shares of the company rose 7% in premarket trading.

The company is determined to avoid any scenario in which it appears to attribute price increases to U.S. tariffs on goods from China, where most Apple devices are assembled, according to the report. Reuters reports.

💊 Novo Nordisk shares slump after study comes out in favor of Zepbound: A study of two blockbuster weight-loss drugs showed that users of Eli Lilly’s Zepbound lost just over 2 inches more off their waist compared with Novo Nordisk’s rival Wegovy.

At 72 weeks, participants using Zepbound saw an average weight-loss reduction of 20.2% versus 13.7% with Novo Nordisk’s own treatment, Eli Lilly said of the results presented at the European Congress on Obesity and published in the New England Journal of Medicine. MarketWatch reports.

🚙 Tesla battery supplier CATL eyes over $4 billion in Hong Kong listing — could become 2025's biggest IPO yet: Tesla battery supplier Contemporary Amperex Technologies Co. Ltd., plans to raise over $4 billion through a stock listing on Hong Kong's stock exchange. What Happened: The Chinese battery giant will aim to raise the figure by selling over 117.9 million shares priced at HK$263 ($33.75) on the Hong Kong stock exchange, Reuters reported on Monday.

The report also suggests that the deal could be raised to $5.3 billion if an offer size adjustment and a Greenshoe option are implemented, which essentially allows the underwriters to sell more shares if there is sufficient demand. Benzinga reports.

(All pricing and percent gains are based on Early Pre-Market from 4:00 AM to 7:00 AM Eastern Time)
Benzinga reports.

1) $GRYP: Gryphon Digital Mining

Total gain: +380.76%

2) $YHC: LQR House

Total gain: +161.80%

3) $KDLY: Kindly MD

Total gain: +139.74%

4) $NXTT: Next Technology Holding

Total gain: +80.08%

5) $CTMX: CytomX Therapeutics

Total gain: +54.02%

The closing price of the top three market percent gainers trading near or above $3 on May 9.

*All pricing and percent gains are based on regular market trading hours from 9:30am to 4:00pm Eastern Time

1) $NXTT: Next Technology Holding

Total gain: +667.74%

The stock appeared to be moving on no notable news.

2) $NVVE: Nuvve Holding Corporation

Total gain: +144.73%

The stock appeared to be moving on no notable news.

3) $WBUY: Webuy Global

Total gain: +59.21%

The stock appeared to be moving on no notable news.

Time (ET) / Report / Period

10:25 am - Fed Governor Adriana Kugler speech

2:00 pm - Monthly U.S. federal budget - April

"The most important quality for an investor is temperament, not intellect."

- Warren E. Buffett

Sourced in:
“The Essays of Warren Buffett: Lessons for Corporate America” by Lawrence A. Cunningham, published in 1997. This quote is adapted from Buffett’s commentary in the 1987 and 2003 Berkshire Hathaway Shareholder Letters, both of which are reprinted in the book.