Categories: Economy

Slower GDP Growth and Inflation in Q1 2024: Market Reactions and Investment Implications

The U.S. economy experienced slower growth in the first quarter of 2024 compared to the previous quarter and below what economists had predicted. Despite a growth rate of 1.6% in the first quarter, this is lower than the 3.4% growth in the final quarter of 2023 and below the economist consensus forecast of 2.5%.

One key highlight of the Q1 2024 GDP was the slowdown in inflation, with the Core Personal Consumption Expenditure (PCE) price index decreasing from 3.4% in Q4 2023 to 3.7% in Q1 2023, exceeding the expected 2%. Real consumer spending growth also slowed from 3.5% to 2.5%, falling short of the expected 2.8%.

Market reactions to the GDP print included a slight increase in the U.S. dollar index and a rise in Treasury yields, with the 2-year yield reaching an unexpected high of 4.95% as traders adjusted their expectations for Fed rate cuts due to higher-than-expected inflation figures. Gold prices also went up by a significant amount, increasing by

Aiden Johnson

As a content writer at newspoip.com, I have a passion for crafting engaging and informative articles that captivate readers. With a keen eye for detail and a knack for storytelling, I strive to deliver content that not only informs but also entertains. My goal is to create compelling narratives that resonate with our audience and keep them coming back for more. Whether I'm delving into the latest news topics or exploring in-depth features, I am dedicated to producing high-quality content that informs, inspires, and sparks curiosity.

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Aiden Johnson

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