iQiyi Inc. (NASDAQ: IQ), the Chinese streaming giant, saw its stock soar 5.18% in pre-market trading on Monday, outperforming initial expectations. This surge comes in the wake of the U.S. government's decision to suspend tariffs on a wide range of consumer electronics, many of which are manufactured in China.

The temporary pause on duties, which covers popular items such as smartphones, laptops, and memory chips, has sparked a rally among Chinese ADRs (American Depositary Receipts) and ETFs. While iQiyi was initially reported to be up 3% in early pre-market activity, the stock's gains accelerated as trading progressed, reaching the 5.18% mark.

This positive movement is not isolated to iQiyi alone. Other Chinese tech giants such as Alibaba, JD.com, and XPeng are also experiencing significant pre-market gains, with increases ranging from 3% to 4%. Analysts suggest that this broad-based rally reflects investor optimism about a potential easing of U.S.-China trade tensions. "Markets are desperate to get some opportunistic optimism in and will take any relief they can find, especially when a large carveout such as electronics, is slated for lower tariffs," commented Vishnu Varathan, head of economics and strategy at Mizuho Bank. However, investors should note that the White House has stated this reprieve is temporary, and the situation remains fluid as trade negotiations continue.