The updraft in equity markets took the S&P higher on Thursday despite confirmation that we are, in fact, in a recession. The first estimate for 2Q GDP came in at -0.9% and more than 100 basis points shy of the expected 0.6% predicted by analysts. This reading marks the 2nd quarter in a row of negative GDP which is the textbook definition of recession. The question that needs to be answered is how deep and how long the recession will last and it could go on for some time. The FOMC is set to increase interest rates by at least another 100 basis points by the end of the year and that is having an impact on activity at all levels.

Next week, the market will be bracing for another round of important economic data and earnings reports. The economic data includes Construction spending and the Non-farm payrolls report, a report that is expected to show steady job creation and rising wages. On the earnings front, reports from more than 20% of the S&P 500 are expected.