📈 Markets Rally On Trade Deal

Good afternoon! Billy Evans, partner of convicted Theranos founder Elizabeth Holmes, is back in the diagnostics game—with a startup that eerily echoes his fiancée’s failed empire. His new venture, Haemanthus, is developing a light-powered device that scans fluids like blood and saliva to detect diseases, starting with pets before jumping to humans. Investors are being pitched on a palm-sized device that might one day become wearable.functioned. They’re set to return to Earth by February.

Evans insists this isn’t a repeat of Holmes’ flameout, stressing that Haemanthus is “a different paradigm” using light and AI instead of lab tests in a box. The company says Holmes has “zero involvement,” despite reports she’s been advising from prison. Haemanthus has raised $3.5 million so far and wants over $50 million total. The skepticism? Understandable. The ambition? Very Theranos-coded.

MARKETS

• Markets ripped higher Monday after the U.S. and China agreed to a 90-day ceasefire in their escalating tariff war, giving investors a long-awaited breather. The Dow popped more than 1,100 points, while the S&P 500 surged 3.3% and the Nasdaq clawed out of bear market territory. Traders raced to buy back beaten-down names on hopes that an economic cold war might be cooling—for now.

• The rally didn’t stop at equities. Bond prices fell sharply, sending yields soaring as Wall Street pushed back its expectations for the next Fed rate cut from July to September. The agreement between the two largest economies eased fears of a near-term recession, boosting confidence across the board. If this détente holds, central bankers may decide the economy doesn’t need help just yet.

STOCKS
Winners & Losers

What’s up 📈

• KindlyMD skyrocketed 251.03% after announcing a merger with bitcoin investment firm Nakamoto, founded by Trump crypto advisor David Bailey. ($KDLY)

• NRG Energy surged 26.21% following its $12 billion acquisition of a power portfolio from LS Power. ($NRG)

• Next Technology Holding jumped 38.56% after disclosing it added 5,000 bitcoin to its balance sheet and plans to buy more. ($NXTT)

• Retail stocks surged on tariff optimism: Five Below (+21.40%), RH (+16.35%), E.l.f. Beauty (+10.82%), Lululemon(+8.73%), Nike (+7.34%), Estée Lauder (+7.17%), Best Buy (+6.56%), and Williams-Sonoma (+8.41%).

• Casino stocks gained on China tariff news: Wynn Resorts climbed 8.22% and Las Vegas Sands rose 6.53%. ($WYNN, $LVS)

• Tech stocks rallied broadly: Amazon (+8.07%), Meta Platforms (+7.92%), Apple (+6.31%), Tesla (+6.75%).

• Semiconductors jumped: Broadcom (+6.43%), Nvidia (+5.44%), AMD (+5.13%), TSMC (+5.93%), Qualcomm(+4.78%), ON Semiconductor (+4.22%).

• US-listed China stocks popped: JD.com (+6.47%), Alibaba (+5.82%), PDD Holdings (+6.10%), Baidu (+5.08%).

• Drugmakers rebounded: Merck (+5.90%), Pfizer (+3.20%), Bristol-Myers Squibb (+3.10%), Eli Lilly (+2.90%).

What’s down 📉

• EchoStar plunged 16.58% after reports the FCC is investigating its 5G network. ($SATS)

• Gold miners sank as gold prices fell: AngloGold Ashanti (-10.36%), Gold Fields (-10.47%), Wheaton Precious Metals (-7.92%), Newmont (-5.93%). ($AU, $GFI, $NEM)

TRADE
U.S. and China agree to slash tariffs for 90 days in major trade breakthrough

After months of tariff tennis, the US and China are finally putting down their rackets—temporarily.

Starting May 14, both sides will slash tariffs in a 90-day truce: the US drops its total rate on Chinese goods from 145% to 30%, and China cuts its retaliatory tariffs from 125% to 10%. The fentanyl-related duties? Still in place.

The breakthrough came after surprise progress in Geneva talks led by Treasury Secretary Scott Bessent. Beyond the headlines, both countries agreed to set up a formal negotiation channel—marking the first thaw in trade relations since Trump’s “Liberation Day” tariff blitz in April.

Wall Street approved: Investors cheered. The S&P 500 jumped 3.3%, oil rallied over 2.5%, and the dollar climbed sharply. Analysts say the move reduces the threat of a stagflation hit and restores short-term confidence in global supply chains. Some even believe this could spark a rebound in tariff-sensitive sectors like tech, semis, and shipping.

But don’t uncork the bubbly yet

This isn’t a full reset—it’s more like a ceasefire with a stopwatch. Trump’s global baseline tariff of 10% is staying put, as are many of the first-term duties on Chinese imports. And while the Geneva talks were unexpectedly productive, the clock is ticking. If meaningful progress isn’t made by mid-August, tariffs could snap right back into place.

Bottom line: Markets got the break they wanted. But unless the next 90 days produce more than good vibes, this truce might just be a pit stop before another escalation.

NEWS
Market Movements

• 🚀 KindlyMD explodes 600% on Nakamoto crypto merger: KindlyMD’s merger with Nakamoto Holdings, led by Trump crypto advisor David Bailey, triggered a parabolic surge as bitcoin-native finance hits healthcare. ($KDLY)

• 🪙 American Bitcoin merger signals crypto consolidation race: Eric Trump-backed American Bitcoin will merge with Gryphon Digital and trade as ABTC, aiming to rival the likes of Strategy and secure a dominant market role. ($HUT)

• 🛍 Shopify pops on trade truce and Nasdaq 100 promotion: Shares of Shopify soared 13.78% as it benefited from both tariff relief and news it will join the Nasdaq 100, replacing MongoDB. ($SHOP)

  📱 Apple considers iPhone price hike as Trump talks tariffs with Cook: President Trump said Apple may increase U.S. investment after speaking with CEO Tim Cook, just as reports emerge of iPhone price hikes tied to tariffs. ($AAPL)

• 📈 CoreWeave erupts as short sellers get steamrolled: Shares of CoreWeave surged 13.84% amid signs of a short squeeze and heavy options activity, with 30% of its float sold short and borrowing costs among the highest in its peer group. ($CRWV)

• 👷‍♂️ McDonald’s plans massive hiring spree with Trump’s labor team: The fast-food giant aims to hire 375,000 U.S. workers this summer, its largest hiring goal in years, as it strengthens ties with the Trump administration. ($MCD)

• 📉 Rigetti tanks after Q1 sales miss estimates by a mile: Rigetti stock plunged after missing revenue targets, adding fuel to the short-seller case following a rough few months for quantum computing hype. ($RGTI)

• 🤖 Walgreens to roll out robotic prescription centers to 5,000 stores: Walgreens is scaling its automated pharmacy hubs ahead of a $10B buyout by Sycamore Partners. ($WBA)

• 📱 Apple users can claim up to $100 in Siri privacy settlement: A $95M class-action allows eligible U.S. customers to file claims for unauthorized Siri recordings. ($AAPL)

• 📈 Coinbase sets goal to become top global financial app in 10 years: CEO says rising stablecoin revenue and institutional crypto use are fueling long-term ambitions. ($COIN)

• 📉 Zepbound outdoes Wegovy in head-to-head obesity trial: Eli Lilly’s Zepbound outperformed Novo Nordisk’s Wegovy in a direct comparison, with patients losing 50 lbs on average vs. 33 lbs. ($LLY), ($NVO)

PHARMA
Pharmaceutical stocks slide as Trump vows to cut US prescription drug prices ‘by 30-80%’

Pharma stocks got a rude awakening Monday after President Trump announced an executive order to slash US prescription drug prices—by as much as 80%—sending shockwaves across the global industry.

The plan? A “Most Favored Nation” policy that pegs US drug prices to the lowest price paid in any developed country. In Trump’s words: Americans should stop “subsidizing socialist healthcare systems.” Cue the collective panic from big pharma, as investors braced for an industry-wide squeeze.

Winners, losers, and lawsuits incoming

Companies heavily reliant on US sales—think Novo Nordisk, AstraZeneca, Pfizer, Merck, and Takeda—saw sharp drops as fears spread that the executive order could gut profit margins. Meanwhile, stocks tied to potential consumer gains, like Hims & Hers, popped on hopes of a more accessible pricing model.

But here’s the kicker: the plan may not be so easy to pull off. Trump’s similar policy in 2020 was blocked in court, and experts say this reboot could meet the same fate. Legal pushback is expected, especially from drugmakers who claim the government is overstepping and threatening innovation.

Cutting the middlemen

The order also directs HHS to explore “direct-to-consumer” drug sales at globally benchmarked prices—essentially cutting out pharmacy benefit managers and insurers. That’s bad news for players like CVS and Cigna, both of which dropped on the day.

So… will prices actually fall?

Hard to say. The policy still lacks specifics—like which drugs are included, which countries set the benchmarks, or how enforcement will work. Analysts are calling it more of a headline grab than a guaranteed overhaul. Still, with Medicare and Medicaid accounting for nearly 40% of US drug sales, even partial implementation could shake the industry.

Calendar
On The Horizon

Tomorrow

Markets took a breather Monday, but the peace won’t last long. Tuesday brings a double dose of fresh data, starting with the NFIB small business optimism index—a key pulse check on how Main Street is holding up as tariffs rattle supply chains. That’ll be followed by the latest inflation reading via the Consumer Price Index, a report that’s likely to reveal early signs of price pressure tied to February’s new trade policies.

Last month’s CPI cooled unexpectedly, but don’t count on a repeat. Economists say April’s figures could be the first to show the inflationary ripple effects of the new tariff regime, with the bigger spike likely showing up in May. While this week’s earnings slate is lighter, there are still a few headliners worth watching—including JD.com, Under Armour, Intuitive Machines, Oklo, and Petrobras.

NEWS
The Daily Rundown

• 🎟 FTC Cracks Down on Hidden Fees: New rules from the FTC take effect today, forcing ticketing and lodging companies to show total prices upfront and ditch vague terms like “service fee.” The move targets deceptive practices, and U-Haul may be next on the chopping block for misleading rental ads.

• 📉 Papal Betting Market Blew Up: When Chicago-born Robert Prevost became Pope Leo XIV, prediction markets went haywire. Kalshi and Polymarket bettors wagered $40 million overall, with one long-shot gambler winning $52,641 on a $526 bet.

• 🇻🇦 Pope Leo XIV Owes US Taxes?: Even as the new pope, Leo XIV may still need to file US income taxes as a citizen if his earnings meet IRS thresholds—yes, really.

• 📱 Apple to Pay $95M Over Siri Recordings: Apple settled a class-action suit alleging Siri recorded users without consent. If you used a Siri-enabled device between 2014–2024, you could claim up to $100 before July 2, 2025.

• 🛰 Soviet Probe Reenters After 50 Years: Kosmos 482, a Soviet Venus mission satellite from 1972, crashed into the Indian Ocean on May 10. Its fiery reentry reignited concerns over aging space junk.

• 🏇 Derby-Winning Jockey Penalized: Junior Alvarado, who rode Sovereignty to victory at the Kentucky Derby, has been fined $62,000 and suspended two days for excessive whip use. He plans to appeal.

• 🕊 Zelensky Proposes Peace Talks in Istanbul: Ukrainian President Zelensky invited Putin for direct talks in Istanbul with a ceasefire condition. Putin wants negotiations without preconditions. The invitation has drawn cautious hope from international leaders.

• 🇸🇦 Trump Headed to Gulf Chasing $1 Trillion: President Trump kicked off a four-day trip to Saudi Arabia, Qatar, and the UAE focused on securing investments across AI, defense, and entertainment. Saudi Crown Prince MBS has pledged up to $1 trillion for the US, prompting major CEOs—including from Citigroup and BlackRock—to tag along. Meanwhile, Qatar is reportedly gifting Trump a custom Boeing 747-8 as a future Air Force One, raising ethical concerns from critics.

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