US Economic Data Indicates Structural Collapse: Markets in Correction

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Recent US economic data are revealing a picture that is far from reassuring. While stocks and cryptocurrencies are experiencing sharp declines, many observers are trying to understand the underlying dynamics. The answer is simple: American macroeconomic indicators clearly show an economy in trouble, and the markets are already pricing in this reality.

The Labor Market Shows Early Signs of Weakening

Employment indicators provide the most eloquent testimony to the economic health. In the recent report, over 100,000 jobs were cut in January, marking the highest level of layoffs since the 2009 Great Recession. At the same time, JOLTS (Job Openings and Labor Turnover Survey) data showed an unexpected plunge, reaching the lowest levels since early 2023. This double movement reveals a significant deterioration: companies are not only reducing staff but also halting new hiring.

What the Contraction of the Job Market Means

When the labor market begins to contract, economic consequences spread quickly. The decline in employment and opportunities leads inevitably to a reduction in consumer spending, which is the main engine of the American economy. Current data leave no doubt: we are facing worsening business conditions that could accelerate the recession cycle.

Pressure Extends to the Credit Sector

It’s not just the labor market showing signs of stress. The tech credit segment is facing significant pressures, with an increasing number of loans and bonds in trouble. This development is particularly relevant because the tech sector represents an important source of economic dynamism and employment in the United States.

How Markets Are Responding

Current reactions in financial markets are not irrational but reflect a rational reassessment of risks. Risk assets, from stocks to cryptocurrencies, are undergoing significant corrections as investors reevaluate the risk profile of a potentially slowing economy. Recent US economic data are indeed pricing in a growing probability of recession, and this adjustment process could continue in the coming weeks.

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