Coty (COTY) stock is soaring in pre-market trading on Monday, surging 8.53% as investors react positively to a broader rally in beauty stocks. The company's shares are leading a sector-wide uptrend, with other major players like elf Beauty and Ulta Beauty also experiencing significant gains.

The catalyst for this impressive rally appears to be a recent agreement between the United States and China to cut tariffs, coupled with a 90-day pause in trade tensions. This development has sparked optimism across the beauty industry, as many companies in this sector rely heavily on global supply chains and international markets, particularly in China.

For Coty, a global beauty company with a diverse portfolio of brands, this tariff reduction could potentially lead to lower costs and improved profit margins. Additionally, eased trade tensions may open up more opportunities for expansion in the lucrative Chinese market, which has been a key growth driver for many beauty companies. As investors digest the implications of this trade agreement, Coty's stock surge reflects growing confidence in the company's future prospects within a more favorable global trade environment.