# US economy suffers worst slump since GFC due to coronavirus, but share markets rally on Fed - ABC News

> The US economy contracted at its fastest pace since the global financial crisis in the first quarter of 2020, with warnings of a possible 35% contraction in the June quarter. Australian stocks rallied after the Fed pledged to act aggressively.

- Date: 2020-04-29 · published 2020-04-29T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/53575-us-economy-suffers-worst-slump-since-gfc-due-to-coronavirus-but-share-markets
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Sharply weaker US demand and rising unemployment point to lower consumption and softer demand for meat, dairy and processed food. Easing from the Fed, however, may cushion commodity prices.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2020-03-16 | [Federal Reserve cuts rates to zero to support the economy during the coronavirus pandemic \| CNN Business](https://feedsoft.ai/events/54045-federal-reserve-cuts-rates-to-zero-to-support-the-economy-during-the.md) | +3.7% | +1.4% |
| DXY | 2020-05-21 | [The Economy in the Time of Coronavirus - FEDERAL RESERVE BANK of NEW YORK](https://feedsoft.ai/events/53035-the-economy-in-the-time-of-coronavirus-federal-reserve-bank-of-new-york.md) | -0.9% | -1.5% |
| DXY | 2017-11-01 | [U.S. Stocks Rise With Dollar on Fed Economy Views: Markets Wrap - Bloomberg](https://feedsoft.ai/events/68153-u-s-stocks-rise-with-dollar-on-fed-economy-views-markets-wrap-bloomberg.md) | +0.1% | -1.2% |
| DXY | 2018-03-04 | [Currency markets send a warning on the US economy](https://feedsoft.ai/events/66191-currency-markets-send-a-warning-on-the-us-economy.md) | -0.6% | -0.8% |
| DXY | 2020-03-02 | [Forex markets: Dollar dented as coronavirus damage spurs interest rate cut bets](https://feedsoft.ai/events/7169-forex-markets-dollar-dented-as-coronavirus-damage-spurs-interest-rate-cut-bets.md) | -0.8% | +4.0% |

## Sources

- abc.net.au: https://www.abc.net.au/news/2020-04-30/asx-global-markets-rally-us-economy-shrinks-coronavirus/12200056

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.