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The US economy grew at its slowest pace in two years in the first quarter, while prices rose at a faster rate — sending the markets into a tailspin Thursday and clouding President Joe Biden’s sunny outlook for American households heading into his reelection battle.

The data released by the Commerce Department showed that gross domestic product (GDP) grew at an annualized pace of 1.6% during the three-month period ended in March — below the 2.4% projected by economists polled by The Wall Street Journal.

The growth rate was the lowest since 2022 and came in much lower than fourth-quarter GDP, which was revised up to 3.4%, and marked a cooldown from the quarter prior, when it was 4.9%.

More troubling was that prices have remained sticky.

Thursday’s data also showed the personal consumption expenditures (PCE) price index excluding food and energy — a key gauge watched by the Federal Reserve as it weighs whether to cut interest rates — surged at a 3.7% rate in the first quarter, versus the central bank’s 2% target.

Investors and analysts put more weight on the high inflation figure than on signs the economy may finally be cooling, which would generally encourage the Fed to cut rates.

The Dow Jones Industrial Index plunged nearly 700 points after the data was released as investors all but gave up hope on the Fed slashing the 23-year high rates more than one time this year — and most likely not until the fall.

The Dow pared some of the losses, closing down 375 points, or 1%. The S&P 500 was down 0.5%, and the tech-heavy Nasdaq dropped 0.6%.

Data from the CME Group’s FedWatch tool showed the probability of a Fed rate cut in June at 10% odds, with bets on a September cut slipping below 58%, and a second cut in December given less than even odds.

“This report comes in with mixed messages,” said Olu Sonola, head of economic research at Fitch. “If growth continues to slowly decelerate, but inflation strongly takes off again in the wrong direction, the expectation of a Fed interest rate cut in 2024 is starting to look increasingly more out of reach.”

The report on GDP, which represents the value of all goods and services produced within a given period, showed that American consumers remain strong after years of hiring and wage growth. Spending was driven by healthcare, financial services and insurance, which offset a decline in goods, including motor vehicles and gasoline.

Biden attempted to spin the GDP data in his favor, touting that “the economy has grown more since I took office than at this point in any presidential term in the last 25 years.”

Gregory Daco, chief economist at the tax and consulting firm EY, noted that the underlying economy looks solid, though its slowing from last years unexpectedly fast pace.

The rise in imports that accounted for much of the drop in first-quarter growth, he noted, is a sign of solid demand by American consumers for foreign goods.

Still, Daco said that the economys momentum is cooling.

Its unlikely to be a major retrenchment, he said, but we are likely to see cooler economic momentum as a result of consumers exercising more scrutiny with their outlays.

US debt has soared to $33 trillion, the highest ever, with the debt-to-GDP ratio topping 100% — at 123%, per the International Monetary Fund, which projects the ratio to reach 130% by 2035.

The Fed has warned that stubbornly high inflation could persist, especially given the resilience of the labor market, which added a whopping 303,000 positions in March.

Though many of the job gains were reportedly taken by migrants — who have been occupying a growing chunk of the US workforce — a strong labor market historically keeps wages and consumer spending levels elevated, thus fanning inflation and interest rates.

As a result, Wall Street is now widely expecting Fed officials to slash two times by the end of the year — down from the previous forecast that there would be three rate cuts totaling 0.75 percentage points.

“Given the strength of the labor market and progress on inflation so far, it’s appropriate to allow restrictive policy further time to work and let the data and the evolving outlook guide us,” Fed Chair Jerome Powell said on April 16.

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Scottish singer drafted in to replace Olly Murs at Glasgow Take That concert thought offer was a ‘joke’

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Scottish singer drafted in to replace Olly Murs at Glasgow Take That concert thought offer was a 'joke'

A Scottish singer plucked from obscurity at the last minute to replace Olly Murs as the opening act for Take That in Glasgow has told Sky News he thought the life-changing opportunity was a “joke”.

Daniel Rooney, 26, was playing at the Radisson Red hotel opposite the OVO Hydro when news broke that Murs was forced to cancel his support act on Friday due to transport issues.

TV presenter Ross King, who was enjoying a family dinner at the hotel, was impressed with Mr Rooney’s vocals and recommended the singer to his friend and Take That frontman Gary Barlow.

With 30 minutes to go before the show was due to start, Mr Rooney was quickly whisked to the arena and opened the festivities with a range of upbeat cover songs.

Barlow later thanked him on Instagram.

(left-right) Howard Donald, Gary Barlow and Mark Owen of Take That during day two of Capital's Jingle Bell Ball with Barclaycard at London's O2 Arena. Picture date: Sunday December 10, 2023.
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Take That: Howard Donald, Gary Barlow and Mark Owen. Pic: PA

Mr Rooney, from Cambuslang in South Lanarkshire, told Sky News he thought it was a wind-up at first.

He said: “I was thinking, ‘right, who’s trying to play a wee joke on me here’. But thankfully it wasn’t a joke and Ross King was saying, ‘I’ve got an opportunity of a lifetime here, Danny boy, so are you up for it?’

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“And I was.”

Mr Rooney started to feel a mixture of emotions on his way to the stage. As well as excitement, he began to feel apprehensive about what he was going to play.

He said: “I was obviously buzzing just to get that news. It was just mental.

“I had a wee discussion with the boys from Take That, who were brilliant and really good with me.

“We just agreed on making it really fun and making the songs nice big singalongs.

“It was just really great. The crowd were brilliant, and they sang to every song and the feedback was magic.”

Mr Rooney paid tribute to Mr King for the opportunity and thanked him for his warm introduction onstage to explain the situation to the crowd.

Speaking to Sky News, Mr King said: “I was listening to [Mr Rooney] while I was having dinner and was very impressed – never thinking that 30 minutes later I’d be saying ‘come with me and support Take That’.

“Gary Barlow is one of my closest pals and I’ve known the band since 1990. When Gary called me and said ‘you’re going to have to go on, Olly is stuck in London’, I thought it was a wind-up. But no.”

Mr King agreed to go on, but then pitched the idea of Mr Rooney.

Mr King added: “Daniel was the coolest guy in the Hydro and played a blinder. I was thrilled to share the stage with him and help out my old mates too.

“I know this has made news all around the world, so I hope Daniel continues to have the success he deserves.”

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Mr Rooney now intends to head into the studio to record some music.

He added: “I’ve got some ideas and demos there, so this is the opportunity to get them out now and just really capitalise on the moment.”

Read more from Sky News:
Anchorman star Will Ferrell invests in Championship club
Madonna plays biggest-ever show on Rio beach

Olly Murs performs during the Coronation Concert held in the grounds of Windsor Castle, Berkshire, to celebrate the coronation of King Charles III and Queen Camilla. Picture date: Sunday May 7, 2023.
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Olly Murs. Pic: PA

Murs apologised for cancelling his performance at short notice after falling foul of flight issues.

The former X Factor star said he had been at Heathrow from 11am ahead of his performance on Friday night, but the flight was cancelled after “several delays” and an accident with a cabin crew member.

He later shared a video of himself being driven to Glasgow for his Saturday and Sunday performances.

Speaking on ITV’s Lorraine programme on Monday, Murs paid tribute to Mr Rooney for holding his nerve and being able to perform in front of an arena crowd of thousands with just 30 minutes’ notice.

Murs said: “Fair play to him, that’s amazing. You know what, credit to him.”

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Eurovision 2024: Who will win this year’s show and the acts to look out for

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Eurovision 2024: Who will win this year's show and the acts to look out for

The 68th Eurovision Song Contest is taking place in Malmo, Sweden, this year.

It’s a spiritual homecoming of sorts with Sweden’s supergroup Abba – who are the most famous band ever to come out of the contest – crowned the winners 50 years ago.

Loved and loathed in equal measure for its euro pop earworms, evocative power ballads, and eye-watering novelty acts, there’s no clear frontrunner for this year’s show – meaning it’s all to play for.

The political elephant in the room is of course Israel’s participation in light of the ongoing Gaza war, with many artists encouraged to boycott the event due to their participation.

As it stands, no act has withdrawn from the contest.

So, with 37 countries heading into the semi-finals ahead of a grand final featuring 26 songs on Saturday, who might we see take first place on the night?

The top three

Croatia is currently the country to beat, with Baby Lasagne (real name Marko Purisic) singing Rim Tim Tagi Dim.

The 28-year-old bleach-blonde frontman says the title doesn’t translate as anything, other than a catchy repeated riff, but a serious theme lies beneath the full-on performance.

Croatia's Baby Lasagna with Rim Tim Tagi Dim. Pic: Sarah Louise Bennett/EBU
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Croatia’s Baby Lasagna with Rim Tim Tagi Dim. Pic: Sarah Louise Bennett/EBU

The song describes the tension of young Croatians leaving their homeland to seek better opportunities abroad, through the character of a farm boy who leaves his home – and his cat – to become a “city boy”.

Another hot favourite is Switzerland, with Nemo singing The Code.

The 24-year-old non-binary performer draws on their childhood opera singing to pull together an impressive song which scales rap, rock, drum ‘n bass and classical opera.

The message in this one is self-acceptance and the freedom for each one of us to live our lives openly and without fear of judgement.

Switzerland's Nemo with The Code. Pic: Alma Bengtsson/EBU
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Switzerland’s Nemo with The Code. Pic: Alma Bengtsson/EBU

Meanwhile, a song that’s been growing in popularity is Ukraine’s Teresa & Maria sung by Alonya Alonya and Jerry Heil.

Alonya, 28, is a well-known rapper in Ukraine, while Heil, 32, found fame on YouTube and appeared on the country’s version of X-Factor.

Utterly hummable, the folk-inflected anti-war song paying tribute to Mother Theresa and the mother of Christ has a strong heritage and shares a songwriter with Kalush Orchestra’s winning 2022 entry Stefania.

Ukraine's Alyona Alyona & Jerry Heil with Teresa & Maria. Pic: Alma Bengtsson/EBU
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Ukraine’s Alyona Alyona & Jerry Heil with Teresa & Maria. Pic: Alma Bengtsson/EBU

In with a chance

Also in the running is Italy with Angelina Mango’s La Noia, which translates as “Boredom”.

The 23-year-old told Italian rock magazine Rockol that while boredom is often seen as a negative thing, she sees it as a time for self-discovery, adding: “Between a life of highs and lows and one of boredom, I will always choose one of highs and lows, but I will always leave myself time for boredom too.”

Italy's Angelina Mango with La Noia. Pic: Alma Bengtsson/EBU
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Italy’s Angelina Mango with La Noia. Pic: Alma Bengtsson/EBU

Meanwhile, Netherlands act Joost has by far the biggest earworm of the crop with Europapa – a song that will delight and infuriate in equal measure. Indeed, one early review of the song proclaimed it was so bad, it had the power to “put you off music forever”.

Despite the silliness of the happy hardcore-infused pop song and the OTT nature of his shoulder-pad-enhanced performance, 26-year-old singer Joost Klein had a heartbreaking inspiration for the song – the loss of both his parents by age 13.

Netherlands act Joost with Europapa. Pic: Sarah Louise Bennett/EBU
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Netherlands act Joost with Europapa. Pic: Sarah Louise Bennett/EBU

The track is about an orphan who travels around Europe trying to find himself, as his father taught him to believe in a Europe without borders, celebrating the national food of each nation en route.

Host country Sweden is also seen as having a chance for back-to-back wins, represented by Norwegian twin brothers Marcus and Martinus Gunnarsen performing their presumptuously titled song Unforgettable.

Sweden's Marcus & Martinus with Unforgettable. Pic: Alma Bengtsson/EBU
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Sweden’s Marcus & Martinus with Unforgettable. Pic: Alma Bengtsson/EBU

But Eurovision voters – made up equally of public votes and a jury of music experts – will of course be the judge of that.

Other notable mentions include France’s Silmane giving a heartfelt rendition of Mon Amour and Ireland’s Bambie Thug singing Doomsday Blue – a song she’s described as “an electro-metal breakdown”.

France's Slimane with Mon Amour. Pic: Corinne Cumming/EBU
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France’s Slimane with Mon Amour. Pic: Corinne Cumming/EBU

Ireland's Bambie Thug with Doomsday Blue. Pic: Sarah Louise Bennett/EBU
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Ireland’s Bambie Thug with Doomsday Blue. Pic: Sarah Louise Bennett/EBU

What about the UK?

As one of the “Big Five” (the countries that contribute the most to the EBU along with France, Germany, Spain and Italy) the UK is guaranteed a place in the final. Plus, as the host nation, Sweden gets an automatic pass too.

This year the UK are represented by ex-Years And Years star Olly Alexander singing the dance-pop track Dizzy.

Performed in a glass box full of boxers, quirky choreography and a catchy refrain have placed it in the top 10, but we’re unlikely to be contenders for the top spot.

Indeed bookmakers reckon the UK are more likely to come last than nail the top spot.

UK's Olly Alexander with Dizzy. Pic: Corinne Cumming/EBU
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UK’s Olly Alexander with Dizzy. Pic: Corinne Cumming/EBU

Controversy this year

There have been calls on the European Broadcasting Union EBU to ban Israel from competing in the show, due to their ongoing ground offensive in Gaza.

An apolitical organisation, the EBU has said Israel will remain in the competition.

In comparison to Russia’s removal from the show back in 2022 due to its invasion of Russia, the EBU say Israel’s broadcaster Kan hasn’t broken any rules. They say Moscow was banned for using their broadcasting channels as a tool for political propaganda multiple times.

Israel's Eden Golan with Hurricane for Israel. Pic: Sarah Louise Bennett/EBU
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Israel’s Eden Golan with Hurricane for Israel. Pic: Sarah Louise Bennett/EBU

Normally strong Eurovision contenders, four-time winners Israel is represented by 20-year-old Eden Golan, and ranks in the top 10. But how the public will vote for them in the second semi-final heat on Thursday remains to be seen.

Golan’s song Hurricane was Israel’s third proposed entry after contest bosses rejected their first two songs over lyrics deemed political.

More than 34,000 people have been killed, and over 78,000 have been injured in Gaza since the conflict began, according to Gaza’s Hamas-led health ministry.

Israel retaliated after Hamas fighters killed more than 1,000 Israelis and took hundreds of hostages in attacks on 7 October last year.

Any other songs that have stirred up a fuss?

Spain’s entry, Zorra, by husband and wife act Nebulossa, has drawn controversy because its title can be translated as an anti-female slur.

While it’s been officially translated as “Vixen,” it’s a term used in Spain which would translate in the UK as “Bitch” or “Slut”.

Spain's Nebulossa with Zorra. Pic: Alma Bengtsson/EBU
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Spain’s Nebulossa with Zorra. Pic: Alma Bengtsson/EBU

Lyrics include: “If I head out solo, I’m a bit of a bitch/ If I’m having fun, I’m the biggest bitch/…When I get what I want (bitch, bitch) /It’s never ’cause I deserve it (bitch, bitch) … Well, she’s been empowering herself, And now she’s a picture-perfect bitch.”

The Feminist Movement of Madrid has called for it to be withdrawn from Eurovision, saying it insults women and is not suitable for a family audience.

Singer Maria Bas has argued her lyrics describe how a woman is referred to as a “zorra” no matter what she does, and that the song highlights society’s double standards, reclaiming a word that is weaponised against women only.

Spain’s prime minister added his twopenneth this week, saying he liked the song and joking about how right-wing critics might have preferred the national anthem used during the Franco dictatorship as Spain’s Eurovision submission.

The hard-right Vox party hit back by saying Pedro Sanchez would prefer to listen to the communist anthem The Internationale.

The Eurovision semi-finals are on Tuesday and Thursday evening, ahead of the grand final on Saturday night.

Sky News will be in Malmo with updates, a live blog, and all the biggest news from the contest as it happens.

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Rapper’s delight: Snoop sponsors Arizona Bowl

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Rapper's delight: Snoop sponsors Arizona Bowl

Snoop Dogg is getting into the college football bowl business with a historic sponsorship that recognizes his 1993 hit song and recent beverage line with Dr. Dre, “Gin & Juice.”

The rapper on Monday revealed the new Snoop Dogg Arizona Bowl presented by Gin & Juice By Dre and Snoop, announcing his intent “to bring the juice back to college football.” The game, previously sponsored by Barstool Sports, will take place Dec. 28 in Tucson, Arizona, and pair teams from the Mountain West and Mid-American conferences.

The partnership marks the first with an alcohol product as the presenting sponsor of an NCAA-sanctioned bowl game. In February, the new beverage company introduced “Gin & Juice” as their first ready-to-drink product — a nod to Snoop Dogg’s hit from the album “Doggystyle,” produced by Dr. Dre and Death Row Records.

“The Arizona Bowl is bringing sports, libations and entertainment into a singular bowl game, and we are changing the definition of what a brand partnership is in the NCAA,” Kym Adair, executive director of the Arizona Bowl, said in a statement.

PlayFly Premier Partnerships, a sports media and marketing company that has worked with the Arizona Bowl since 2021, finalized the agreement between Snoop Dogg and the bowl game.

“College football fans are exhausted by the constant talk around NIL, conference realignment, coach movement, transfer portal and super conferences, so it’s time that we get back to the roots of college football,” Snoop Dogg said in announcing the partnership on social media. “When it was focused on the colleges, the players, the competition, the community, the fan experience and the pageantry. … So it’s only fitting that I step up and get this thing right.”

Snoop Dogg has long been involved in football, launching the Snoop Youth Football League in 2005 and often attending USC practices and games. His son Cordell Broadus initially signed to play wide receiver at UCLA but ended up stepping away from the sport.

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