Economic Downturn Signals: Jobless Claims Rise While GDP Contracts

Recent data paints a concerning picture of the U.S. economy, raising alarms about a potential downturn. Jobless claims surged to 240,000 for the week ending May 24, exceeding expectations and indicating labor market stress. This surge, coupled with the revised GDP contraction at -0.2%, highlights the existing economic strain. These figures suggest that the Federal Reserve may need to act soon. The potential impacts on financial markets are yet to be seen but could lead to volatility.