iQiyi Inc. (NASDAQ: IQ), the Chinese video streaming platform, saw its stock surge 5.32% in pre-market trading on Monday, riding the wave of optimism following a breakthrough in US-China trade negotiations. The rally comes as part of a broader upswing in Chinese stocks, particularly in the technology sector, after both countries agreed to significant tariff reductions for a 90-day period.

The positive momentum in Chinese stocks was triggered by reports that the United States and China have made "substantial progress" in their trade talks held in Switzerland. According to a joint statement, China will reduce tariffs on US goods to 10% from 125%, while the US will cut tariffs on Chinese imports to 30% from 145% for the next 90 days. This development has been hailed as an important first step towards resolving long-standing trade tensions between the world's two largest economies.

While iQiyi was not specifically mentioned in the news, the company is benefiting from the overall positive sentiment towards Chinese ADRs (American Depositary Receipts) and tech stocks. Other Chinese tech giants such as Alibaba, JD.com, and PDD Holdings also saw significant gains, with some stocks rising by 7% or more. The Direxion Daily FTSE China Bull 3X Shares (YINN), an ETF that tracks Chinese stocks, jumped by 11%, further underscoring the broad-based rally in the Chinese market. As a major player in China's streaming industry, iQiyi's stock movement reflects investor optimism about the potential for improved US-China relations and its positive impact on the Chinese technology sector.