The Q1 GDP growth being revised from 2.9% to 2.0% is quite disappointing. Results are far from what has been promised by the president. With tariffs about to hit the economy, the outlook is anything but encouraging.
In addition to the weak GDP numbers the latest jobs numbers are also showing softness. Initial jobless claims rose to 227,000 in the week ending June 23 from 220,000 the week before. This number is usually a harbinger of things to come in the overall jobs data. The very good May unemployment report that was announced in June is unlikely to be repeated. A weakening of jobs could potentially be the next reason for the stock market to accelerate its decline.