As of early June 2025, the market has rebounded strongly, with the S&P 500 nearing its all-time highs and closing just above 6000. Despite being technically overbought, positive momentum and upcoming favorable news—such as tariff adjustments and budget realignments—are helping sustain the rally. Analysts at PVG remain cautiously optimistic, highlighting that while geopolitical concerns like Russia-Ukraine and Iran persist, sectors like energy and healthcare are seen as strategic hedges. Additionally, the rotation from tech-heavy “Magnificent 7” stocks toward equal-weighted indexes, energy, and healthcare reflects a shifting market dynamic. Investors are also watching economic indicators such as jobless claims and inflation data closely, with CPI and PPI reports due soon.

Sector performance has been mixed, with industrials, communications, and financials showing strength, while consumer discretionary continues to struggle. The PVG tactical strategies generally posted modest gains for the quarter, but standout performance came from the specialty “Emerging Healthcare” focus, which returned over 10% quarter-to-date. Interest rates remain relatively high across durations, and while recent ISM data reflected slowing manufacturing activity, a major drop in imports helped narrow the U.S. trade deficit. Overall, the outlook remains constructive heading into summer, with a watchful eye on inflation, employment trends, and possible headwinds in August and September.

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