Mattel Inc. (MAT) saw its stock soar 8.35% in pre-market trading on Monday, as consumer discretionary stocks rallied following a new trade agreement between the United States and China. The deal, which sets tariffs at a 30% rate, has sparked optimism across the retail sector and particularly benefited companies with exposure to Chinese imports.

The agreement, announced by the White House, reduces China's tariffs and eliminates retaliation, while also setting a path for future discussions to open market access for American exports. This development has particularly boosted companies that J.P. Morgan recently cited as having "highest upside potential" if China tariffs were to recede, with Mattel being among those mentioned.

The surge in Mattel's stock price is part of a broader rally in the consumer discretionary sector. The Consumer Discretionary Select Sector SPDR ETF (XLY) was up 5.1% in pre-market trades, reflecting the positive sentiment across the industry. Other beneficiaries include retailers like Best Buy, Amazon, and Nike, as well as companies in related sectors such as Wayfair and RH, all experiencing significant pre-market gains. This movement underscores the market's optimism about reduced trade tensions and the potential for improved consumer spending in the wake of the U.S.-China trade deal.