Earlier today the Global PMI (Purchasing Managers Index) figures for various countries was released, sending bond yields significantly lower and providing an initial boost to U.S. equity markets. According to the preliminary June US PMI data, it currently appears U.S. Manufacturing slowed down considerably, dropping from 57.0 in May to 52.4 in June (56.0 was expectations), and U.S. Services also declined, dropping from 53.4 in May to 51.6 in June (53.3 was expectations). When the reading is above 50, this usually means a growing economy and increased production; however, a reading below 50 indicates an economic contraction and reduced output. As such, these readings are signaling notable economic weakness in Q2 2022 that will inevitably carry over into Q3 2022 as well. Finally, markets can’t seem to make up their mind on whether or not this is good for risk assets, as an economic slowdown may induce the U.S. Federal Reserve to pause their current hawkish sentiment, or bad for risk assets, as an economic slowdown may cause significant dislocations in the labor market amidst persistent high inflation.