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Contentious July jobs report confirms the U.S. economy is slowing sharply. Here's why

1. U.S. job growth slowed with only 73,000 payrolls added in July. 2. Economic indicators suggest a high risk of recession despite GDP growth. 3. Weak job market may lead to reduced consumer spending and investment. 4. Goldman Sachs projects only 1% growth in the final two quarters. 5. Markets remain volatile amid heightened economic uncertainty.

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FAQ

Why Bearish?

Weak job growth and recession fears typically lead to lower stock prices. Similar past instances (like 2020) reveal that economic downturns significantly impact S&P 500.

How important is it?

The news outlines concerning economic trends that are highly likely to affect investment sentiment in the S&P 500.

Why Short Term?

Economic data tend to have immediate effects on markets, evidenced by swift market reactions in similar historical contexts.

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