Unemployment, job fair
People wait in line to enter a job fair in New York.
  • The US economy is showing signs of a sudden slowdown after a year of tightening financial conditions. 
  • Retail sales are starting to decline as the job market shows signs of finally weakening.
  • "Expectations of tightening lending standards contributed to the market's concern that an economic slowdown is unfolding in real time," LPL said.

There is growing evidence to suggest that the US economy is hitting the brakes, and it could ultimately threaten the stock market as investors gauge whether the bad news will tempt the Federal Reserve to stop its interest rate hikes or keep tightening.