Gaotu Techedu Inc. (GOTU) saw its stock price surge by 5.01% during Thursday's trading session, riding the wave of a broader rally in Chinese ADRs and ETFs. The significant uptick comes in the wake of a pivotal US court decision that has sparked optimism for easing global trade tensions.

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

While Gaotu Techedu's impressive gains stood out, it was not alone in its upward trajectory. Other prominent Chinese ADRs also experienced substantial increases, with companies like XPeng and JD.com seeing gains of around 6%. Additionally, major players such as Alibaba and Pinduoduo recorded increases of more than 3%. The positive sentiment extended to China-focused ETFs as well, with CWEB and YINN posting gains of 7% and 6% respectively.