Markets rebounded sharply last week, with major indexes like the NASDAQ and S&P 500 posting gains of 6.73% and 4.59% respectively. Despite this rally, year-to-date performance remains negative across most indices, reflecting underlying economic concerns. A key focus this week is the first quarter GDP report, which is widely expected to disappoint—potentially showing contraction rather than the modest 0.4% growth initially forecast. Inflation remains a debated topic, with the upcoming PCE data expected to show no monthly change. Market sentiment continues to be shaped by economic indicators like ISM Manufacturing and Employment data, both due this week, along with a flurry of major tech earnings, including META, MSFT, AAPL, and AMZN.

While markets have climbed above short-term technical resistance, analysts at PVG caution that the rally may be losing steam without fresh positive catalysts. The self-driving car sector is emerging as a major growth narrative for the second half of 2025, with companies like Tesla, Google (Waymo), and Mobileye making progress in commercialization. PVG continues to advise a cautious approach—emphasizing the importance of cash reserves, stop-loss strategies, and a focus on income-generating stocks. With economic uncertainty still looming, selective exposure to undervalued innovation sectors like autonomous driving may offer long-term upside.

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