Gaotu Techedu Inc. (GOTU) saw its stock soar 6.80% in intraday trading on Monday, riding the wave of enthusiasm that swept through Chinese ADRs following a significant breakthrough in US-China trade relations. The surge in GOTU's share price aligns with a broader rally among Chinese stocks benefiting from the recent trade progress between the world's two largest economies.

The catalyst for this market-wide uptick is the agreement between the United States and China to implement major reductions in tariffs for a 90-day period. According to a joint statement released in Geneva, the US will slash its combined 145% levies on most Chinese imports to 30%, while China will drop its 125% duties on US goods to 10%. This move aims to cool trade tensions and provides both nations with additional time to resolve their differences.

The positive sentiment has lifted Chinese ADRs across various sectors, with education technology companies like Gaotu Techedu experiencing significant gains. Other notable movers include e-commerce giants Alibaba and JD.com, as well as electric vehicle manufacturers NIO and XPeng, all seeing increases of 5% or more. The Direxion Daily FTSE China Bull 3X Shares (YINN), a leveraged ETF tracking Chinese stocks, surged by approximately 10%, underscoring the broad-based nature of this rally.

As negotiations continue and a mechanism for further discussions is established, investors will be closely monitoring any additional progress that could further benefit Chinese stocks listed on US exchanges. The market's reaction suggests a renewed optimism about the business prospects for Chinese companies operating in or connected to the US market, potentially paving the way for improved growth opportunities in the coming months.