Xero Ltd (XRO.AU) saw its shares surge by 10.49% in pre-market trading on Thursday, as part of a broader rally in Australian technology stocks. The company's stock price jump comes amid a significant upturn in the tech sector, with the Australian tech stock index (.AXIJ) soaring more than 11% to reach 2,339.10 points, marking its largest percentage gain since early November 2011.

The rally was sparked by U.S. President Donald Trump's announcement of a 90-day pause on tariffs for some nations, while also stating he would temporarily halt duties on certain others. This move has significantly improved global market sentiment, particularly benefiting the technology sector. Xero's impressive gain of 10.49% aligns closely with its intraday performance, which saw the stock climb as much as 11.3%, its biggest intraday percentage jump since November 11, 2020.

The positive momentum wasn't limited to Xero, as other Australian tech stocks also experienced substantial gains. WiseTech Global (WTC.AX) climbed 9.8%, highlighting the sector-wide impact of the news. The rally in Australian tech stocks mirrors the sharp rebound seen on Wall Street, where the Nasdaq composite index rose 12.2%, while the S&P 500 and Dow Jones Industrial Average also posted significant gains of 9.5% and 7.9%, respectively.