Gaotu Techedu Inc. (GOTU) saw its stock price soar by 5.01% in intraday trading, joining a broader rally among Chinese ADRs and ETFs. The surge comes in the wake of a significant US court decision that has sparked optimism for easing global trade tensions.

The rally was triggered by a ruling from the US Court of International Trade in Manhattan, which blocked President Donald Trump's sweeping "reciprocal tariffs" on China. The court deemed that the president had overstepped his authority in imposing these punitive measures. This decision has fueled investor hopes for a potential de-escalation in the ongoing trade disputes between the United States and China.

While Gaotu Techedu, a Chinese education technology company, was not specifically mentioned in the reports, it appears to be benefiting from the positive sentiment surrounding Chinese stocks listed in the US. Other Chinese ADRs also saw significant gains, with companies like XPeng and JD.com rising around 6%, and major players such as Alibaba and NIO climbing more than 3%. The ruling's potential to ease trade tensions could provide a more favorable business environment for Chinese companies operating internationally, including those in the education sector like Gaotu Techedu.