Market Outlook Summary (July 22, 2025)

Markets experienced modest declines last week, with the S&P 500 down 0.31% and the Dow Jones off 1.02%, while the NASDAQ held nearly flat. The Federal Reserve is expected to lay the groundwork for rate cuts in its upcoming meeting, a key development influencing investor sentiment. Earnings season continues, and after a lackluster showing from banks like JPMorgan, attention now turns to tech giants such as Google and Tesla, alongside semiconductor companies, which could confirm or negate hopes of a cyclical rebound. While technical indicators remain strong, PVG Asset Management notes caution, pointing to potential overextensions in indices like the QQQ. Profit-taking strategies are being employed ahead of the traditionally volatile August–October period, with some positions rotated into undervalued opportunities like BAX.

Policy developments also play a role in the broader economic narrative. The recently passed “One Big Beautiful Bill Act” is projected to inject 1% annual growth into the economy through tax cuts and capital spending incentives. Meanwhile, the “GENIUS Act” aims to secure the U.S. Dollar’s dominance via stablecoin regulation. Inflation, as measured by the CPI, rose 2.7% over the past year, the largest gain in five months, although wholesale prices remained flat in June. Retail sales rebounded following the easing of trade tensions. PVG’s Emerging Healthcare strategy continues to outperform, with high expectations around clinical milestones and potential FDA approvals, reinforcing the long-term power of strategic sector exposure.

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