Keep this in mind when sifting through the end-of-the-world headlines: This, too, will pass.

Passing through the second half of 2010, however, may feel like a firm kick to the face.

Don't act like you didn't see this coming. By and large, the now-evident second-half slowdown is not a factor of European fallout or the Gulf oil spill (although neither helps). It's the retrenchment in stimulus spending and housing credits, both of which end in very predictable, well-telegraphed, and even written-into-law ways. This slowdown shouldn't surprise anyone.

Businessweek.com compiles comments from Wall Street economists and strategists on the key economic and market topics of July 1.

Michael Feroli, JPMorgan Chase

Incoming data have led us to lower our tracking of second-quarter GDP from 4.0 percent to 3.2 percent. In addition, the ongoing tightening in financial conditions is leading us to mark down our projection for third -quarter GDP from 4.0 percent to 3.0 percent. Since the intensification of the European crisis in late April, the risks to U.S. economic growth have been tilting to the downside. The latest round of data confirm that the sovereign crisis transmission channels have been operative and weighing on the economy: Export orders tanked, confidence has stumbled, and the hit to households' equity wealth is becoming a considerable impediment to consumer spending.

Disappointing economic reports heightened concerns Wednesday about the strength of a U.S. recovery.

New-home sales tumbled to a record low in May after a popular homebuyer tax credit expired, the government said, further dampening hopes of a housing recovery.

The Federal Reserve also downgraded its economic assessment, noting "developments abroad," a veiled reference to Europe's debt crisis, are hurting the U.S.

WASHINGTON (Reuters) – Sales of new homes dropped a record 32.7 percent in May to the lowest level in at least four decades as the boost from a popular tax credit faded, adding to worries over a slowing economic recovery.

Single-family home sales tumbled to a 300,000 unit annual rate, the lowest level since the series started in 1963, the Commerce Department said on Wednesday.

NEW YORK – Stocks fell Thursday after a surprise increase in new claims for jobless benefits and a weaker regional manufacturing report raised concerns about the economy.

The Dow Jones industrial average fell about 30 points in late trading after rising four the last five days. All the major indexes were down.

HONG KONG (AFP) – Asian markets were mixed on Thursday with the mood dampened by reports that Spain was seeking an IMF bailout while profit-takers moved in after several days of gains.

Wall Street gave a weak cue after upbeat industrial production figures were tempered by worse-than-expected housing data.

Housing starts plunged in May by the most in more than a year, the Commerce Department said Wed-nesday, as demand for homes faltered after tax credits expired. But industrial production jumped by the most in 10 months, the Federal Reserve said.

Housing starts dropped 10%, the most since March 2009, to an annual rate of 593,000 homes. Wall Street expected a smaller decline, to 655,000. Prior months' starts were revised down.

WASHINGTON (Reuters) – Housing starts hit a five-month low in May as a homebuyer tax credit expired while wholesale prices remained subdued, giving the Federal Reserve ample room to maintain its ultra-low interest rate policy.

The weak housing market data released by the Commerce Department on Wednesday contrasted with a separate report from the Fed that showed a surge in industrial output, highlighting the uneven nature of the economic recovery.

WASHINGTON (AFP) – New US housing construction slumped in May to the lowest level this year, the government said Wednesday, renewing concerns about a sector that was at the center of the financial crisis.

In another indication of the troubles bedeviling the sector, the government said it had ordered embattled mortgage giants Fannie Mae and Freddie Mac to delist from the stock market, ending an arrangement that underpinned the housing market for 40 years.

WASHINGTON (Reuters) – Housing starts fell to a five-month low in May but industrial output rose, evidence of an uneven recovery that has kept inflation at a minimum.

As the government's tax incentives for homebuyers expired, new home building dropped 10 percent to a seasonally adjusted annual rate of 593,000 units, the lowest level since December, the Commerce Department said on Wednesday.