Stock Market Today: Dow Closes at New High After Fed Signals Rate Cuts
The central bank left rates unchanged at its December meeting, but hinted that several cuts are coming in 2024.


Stocks traded in a tight range in the lead up to this afternoon's policy announcement from the Federal Reserve as investors took in another mixed inflation reading. However, the main indexes took a decisive turn higher after the central bank, as expected, kept interest rates unchanged in its December meeting and gave an update on the number of rate cuts it expects in 2024.
Ahead of the mid-afternoon Fed news, data from the Bureau of Labor Statistics showed the November Producer Price Index (PPI), which measures what businesses are charging suppliers for goods, was unchanged on a month-to-month basis, and up 0.9% on an annual basis. The monthly figure was higher than the 0.4% decline seen in October, while the yearly number was slower than the 1.2% rise from the previous month.
Core PPI, which excludes volatile food and energy prices, matched October's 0.1% increase. Year-over-year, core PPI was up 2.5%, below what was seen the month prior.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Fed keeps rates unchanged, but hints cuts are to come
Today's mixed inflation data echoes what was seen in Tuesday's Consumer Price Index (CPI) report for November. In today's press conference, Fed Chair Jerome Powell acknowledged that the recent improvement we've seen on inflation "is very good news." However, Powell admitted it remains above the central bank's 2% target and that "we need to see more progress."
Still, according to the Fed's Summary of Economic Projections (SEP), or the "dot plot," which summarizes what each member expects monetary policy to be going forward, most central bankers anticipate three quarter-point rate cuts in 2024.
"The stock market waited all year for the Federal Reserve to pivot and for Christmas it gave the market the present of a pivot," says Anthony Denier, CEO of Webull, a commission-free trading platform. By keeping the federal funds rates unchanged and forecasting cuts for next year, "the Fed took a step toward the market, rather than the market moving toward the Fed."
Pfizer spirals after giving gloomy 2024 guidance
In single-stock news, Tesla (TSLA) was down 3.7% at its intraday low after the electric vehicle maker said it is recalling 2 million cars over Autosteer control issues with its Autopilot advanced driver-assistance system. "There may be an increased risk of a collision" in circumstances where a driver is misusing features related to Autosteer, said the recall notice issued by the National Highway Traffic Safety Administration. Thanks to the afternoon Fed surge, though, TSLA stock ended the day up 1.0%
Elsewhere, Pfizer (PFE) plunged 6.7% after the pharmaceutical giant said it expects fiscal 2024 revenue to range between $58.5 billion and $61.5 billion. Earnings per share are forecast to land between $2.05 and $2.25. By comparison, analysts, on average, anticipate full-year earnings of $2.93 per share on $58.6 billion in sales. The blue chip stock closed today at $26.66 – its lowest level since October 2014.
As for the main indexes, the Dow Jones Industrial Average rose 1.4% to 37,090 – a new all-time closing high – the S&P 500 gained 1.4% to 4,707, and the Nasdaq Composite climbed 1.4% to 14,733.
Related content
- Amazon Pilot Tests A New Grocery Delivery Plan
- The Earnings Recession Is Over
- Kiplinger's Earnings Calendar for This Week
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
IRS 1099-K Threshold for 2025 Taxes Just Changed: What to Know Now
Tax Law After years of uncertainty and changing requirements, the 1099-K reporting rules for 2025 are now set, and the thresholds have changed since last year.
-
The 'Permission to Spend' Rules of Retirement Spending
Here’s how to spend guilt-free when you are in retirement.
-
Rally Fades on Mixed AI Revolution News: Stock Market Today
All three main U.S. equity indexes opened higher but closed lower as a seven-session winning streak for the S&P 500 came to an end.
-
S&P, Nasdaq Hit New Highs: Stock Market Today
A late-day rally wasn't enough to lift the Dow into the green as its six-session winning streak came to an end.
-
Dow Adds 238 Points as UNH, CAT Pop: Stock Market Today
The lack of a September jobs report didn't seem to worry market participants, with the data delayed due to the ongoing government shutdown.
-
Stocks at New Highs as Shutdown Drags On: Stock Market Today
The Nasdaq Composite, S&P 500 and Dow Jones Industrial Average all notched new record closes Thursday as tech stocks gained.
-
S&P 500 Sees New Highs on Shutdown Day: Stock Market Today
Most of its components were in the red, but the S&P 500 Index still managed to hit a new intraday all-time high.
-
Stocks Close September on a High Note: Stock Market Today
A little bit of late risk-on behavior was enough to lift stocks into the green on the last day of September.
-
If You'd Put $1,000 Into Bank of America Stock 20 Years Ago, Here's What You'd Have Today
Bank of America stock has been a massive buy-and-hold bust.
-
Investors Take Stock of Shutdown Talk: Stock Market Today
Whether we'll have a Jobs Friday this week depends on if we have a government shutdown in Washington.