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.

US Federal Reserve Chair Jerome Powell speaking at podium with american flags and fed seal in the background
(Image credit: BRENDAN SMIALOWSKI/AFP via Getty Images)

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.

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Karee Venema
Senior Investing Editor,

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.