Occidental (OXY) stock surged 5.14% in pre-market trading on Monday, leading a broader rally in the energy sector. The significant jump comes as investors react positively to a breakthrough in US-China trade negotiations, which has sparked optimism across various sectors, particularly benefiting energy stocks.

The catalyst for this market upswing is the recent agreement between the United States and China to mutually reduce tariffs on each other's goods. China has committed to lowering its tariffs on US products to 10% from previous levels that had reached as high as 125%, while the US will cut its tariffs to 30% from 145%. This 90-day arrangement signals a potential thaw in the long-standing trade tensions between the world's two largest economies, boosting investor confidence in global trade conditions and potentially increasing demand for oil and energy products.

Occidental's impressive pre-market gain is part of a sector-wide rally in energy stocks. Other major players in the industry also saw significant increases, with Halliburton matching Occidental's performance with a 4% rise, while Schlumberger and Chevron were up 3%, and ExxonMobil rose by 2%. This upward trend in energy stocks contrasts sharply with the performance of gold stocks, which experienced declines as investors shifted away from safe-haven assets in light of the improved trade outlook. The positive sentiment surrounding Occidental and its peers reflects growing investor optimism about the energy sector's prospects in the wake of this landmark trade agreement.