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The surprise decline in the economy has sent markets on a volatile ride, but a deeper look at the data may explain why stocks managed to recover from their initial plunge.

Advertising Disclosure: When you buy something by clicking links within this article, we may earn a small commission, but it never affects the products or services we recommend. The U.S. economy unexpectedly shrank in the first quarter of 2025, stunning investors and intensifying recession fears after months of debate. According to the Bureau of Economic Analysis’ advance estimate released…