03:32 PM EDT, 05/12/2025 (MT Newswires) -- US benchmark equity indexes are on track to close higher on Monday, as investors parsed the agreement between the U.S. and China to suspend most tariffs.

The Dow Jones Industrial Average gained 2.7% to 42,346.9, while the Nasdaq Composite increased 4.2% to 18,649.3. The S&P 500 was up 3.1% to 5,830.3. Consumer discretionary sector posted the highest gains, while utilities had the steepest decline.

NRG Energy ( NRG ) shares surged 25%, the top gainer on the S&P 500. The company said Monday it agreed to acquire a portfolio of power assets from LS Power Equity Advisors in a cash-and-stock deal valued at about $12 billion.

President Donald Trump signed an executive order Monday aiming to reduce US prescription drug prices by aligning them with lower international rates and indicated intent to eliminate the role of pharmacy benefit managers. Shares of Pfizer ( PFE ) , Johnson & Johnson ( JNJ ) , Merck ( MRK ) , AbbVie ( ABBV ) and Eli Lilly ( LLY ) were up 3.3%, 0.2%, 6.7%, 3.6% and 3.2%, respectively. Shares of UnitedHealth Group ( UNH ) , CVS Health ( CVS ) and Cigna ( CI ) -- owners of the three largest PBMs -- were down 0.3%, 4% and 5.4%, respectively.

The 10-year US Treasury yield gained 6.9 basis points to 4.5%, while the two-year rate was up 9 basis points to 4%.

June West Texas Intermediate crude oil was up 1.3% to $61.79 a barrel.