Gaotu Techedu Inc. (GOTU) stock surged 5.05% in the pre-market trading session on Tuesday, amid a broader rally in Chinese ADRs (American Depositary Receipts) listed on U.S. exchanges.
The bullish sentiment was fueled by growing optimism that trade negotiations between the U.S. and China could potentially avert an escalating trade war. Investors are hopeful that similar negotiations to the ones that delayed tariffs on Mexico and Canada could also take place with China to resolve the ongoing tariff disputes.
Additionally, enthusiasm around artificial intelligence (AI) companies, particularly after progress made by a Chinese AI startup called DeepSeek, contributed to the pre-market rally in Chinese tech stocks, including Gaotu Techedu Inc.
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