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Shares of Stanley Black & Decker, which makes DeWalt power tools and other brands, soared on MondayKey Takeaways
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Stanley Black & Decker stock was one of the biggest gainers in the S&P 500 on Monday amid a broad market rally.
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The power tool maker said last month that tariffs would negatively affect full-year EPS by roughly 75 cents.
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China and the U.S. agreed over the weekend to lower tariffs on imports for the next 90 days, with China dropping to 10% for American imports and the U.S. cutting tariffs on Chinese goods back to 30%.
Shares of Stanley Black & Decker (SWK) surged 16% on Monday, making the stock one of the biggest winners in the S&P 500 amid a broad market rally following the latest tariff news.
The maker of DeWalt and Craftsman power tools last month said it would have to raise prices as one of several mitigating actions to limit the impact of the Trump administration's sweeping tariffs. The company projected that the tariffs would reduce its full-year earnings per share (EPS) by approximately 75 cents.
But the White House early this morning said it had reached a 90-day agreement to reduce tariffs with China as a result of negotiations this weekend. The U.S. levy on Chinese imports will be reduced to 30% from 145% by Wednesday, while Beijing's tariffs on U.S. goods will drop to 10% from 125% while a larger trade deal is negotiated over the next 3 months.
Stanley Black & Decker shares trailed only NRG Energy (NRG), which topped first-quarter estimates and announced a $12 billion acquisition, among S&P 500 winners Monday. Follow Investopedia's live coverage of the day's market news here.
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