The stock market now faces two primary risks. First, the economy could slow too much, which would jeopardize profit performance. Second, a strong rebound in stocks could stoke consumer spending and renew concerns about overheating and additional interest rate hikes.
The cacophony on Wall Street this week reflected concerns that the Federal Reserve may raise interest rates further and that corporate profit performance could start to dissipate.
It will be ugly. In any case it's only one month's number, but it could either alleviate or exacerbate inflation concerns which have recently accelerated.