What's Driving This Week's Rally?

The Dow's having a heck of a week! Closed over 300 points higher today alone. And while that makes some sense in that, amid a notably positive backdrop, the index was negative (-1.23%) on the year less than a week ago (5/31)  -- i.e., in theory it's only a matter of time before stock prices reflect the fundamental backdrop -- make no mistake, news that this year's primary headwind may be abating is the present  driver:

U.S. and China Barter on Trade Gap, ZTE as Tariff Deadline Nears

• China said to offer to buy $25 billion more in U.S. goods

• U.S. said to be finalizing deal to help revive China’s ZTE

(Bloomberg) -- The U.S. and China continued to haggle over the shape of a deal to fend off an impending trade war, with China offering to boost purchasesof American goods and the U.S. finalizing a deal to allow China’s ZTE Corp. to resume purchases from American suppliers.

Ahead of a mid-June deadline for imposing tariffs on Chinese imports, China has offered to boost purchases of U.S. goods by about $25 billion this year, according to two people familiar with the matter, who spoke on condition of anonymity because the negotiations aren’t public. Crude oil, coal and farm products are among the goods that the Chinese are willing to buy more of, according to the people briefed on the talks.

Thing is, last week the President definitively stated that $50 billion worth of tariffs will be announced by month-end and imposed shortly thereafter. China says that if that's the case, all of the above is for not. Unless somebody's bluffing, this week's rally may be for not as well...