Spain's Aid Package Impacts Market

The stock market was impacted this morning in light of Spain's aid package and Greece's upcoming election. Spain has received 100 billion euros ($125 billion) in an aid deal to help their struggling banks. Since this aid package was larger than expected, it gives the financial markets a bit of breathing room for now. The size of this aid package points to a big commitment from the euro zone to stabilize the economy. However, this also suggests that the EU is nervous about the Greek election since the vote could potentially lead to Greece leaving the euro zone. All of this uncertainty in Europe is causing U.S. companies more difficulties in growing their revenue. Overall, there remain worries concerning the global growth outlook in light of the European debt crisis, but things have taken a step in the right direction.

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U.S. Job Market Staggers

The U.S. economic recovery has had a bit of a slowdown in May. According to the Labor Department's Job Report for May, only 69,000 jobs were created. This is a much lower number than experts had expected for the month. With that said, the unemployment rate has also climbed up to 8.2%, which is the first time it has increased in the past 11 months. This all comes at a time when Americans are worried about the European crisis, higher gas prices and the constant problems that the housing market faces. It is important, therefore, that the U.S. economy continues to grow, especially since Europe is declining. If the U.S. has frequent slowdowns like the one in May, it could bring about a global slowdown. It had enough of an impact on the economy for the Obama administration to comment that this jobs data was unacceptable and that Congress needs to do something to strengthen the nation. Time will tell if they take action to make a difference in the lives of Americans or not.

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