Consolidation after the euphoria?

The de-escalation between China and the United States dominated the week, pushing risky assets a little higher. The S&P gained 4.5% over the week and is now 4% higher than it was just before Liberation Day and, more importantly, close to where it was at the beginning of the year. This is paradoxical given the 10% increase in average tariffs on US imports (from 3% to 13%) this year, but understandable given the lack of any significant impact on the US economy. Will this upturn last? Probably not, as the flow of good news is now well priced in. We will therefore need to be more cautious over the coming weeks.