As a long term investor, I am of course happy about the recent rally in the stock market. However, this is not due to a market reversal catalyst (e.g. interest rate cuts, full tariffs abolition etc.). Apart from some good earnings published this week, two catalysts might be:
1) China renouncing to tariffs on chips, medical devices etc. since they are too important to their economy
2) Trump' s administration hinting at negotiations on tariffs.
However, even if there are negotiations, they might take years until the agreements are implemented, and tariffs might be lowered but still be there. The rally of this week cannot have been triggered by retail investors: Banks and other institutions must have been the drivers of the rally and they for sure have more "insider" information than retail investors. If we assume that the rally has been triggered by institutions and bank, could this be a sign that something will certainly come out soon and turn the market into bullish again? What are your thoughts?