The daily business briefing: December 14, 2023

1. Fed signals interest rate cuts in 2024

The Federal Reserve ended its last policy meeting of 2023 on Wednesday by keeping interest rates unchanged and projecting three rate cuts next year. The Fed has aggressively raised rates to fight stubbornly high inflation. Recent signs that inflation is cooling have fueled hopes that the increased borrowing costs slowed the economy enough to bring inflation down to the Fed's 2% target without triggering a recession. Fed Chair Jerome Powell said after the meeting that the Fed's historic tightening of monetary policy is probably over and the time for reducing borrowing costs is coming "into view." Reuters

2. Dow surges to record high

The Dow Jones Industrial Average jumped to a record high Wednesday after the Federal Reserve indicated likely rate cuts next year, fueling optimism about the economy. The Dow, the S&P 500 and the Nasdaq closed about 1.4% higher. The Dow finished the trading day at 37,090.24, the 30-stock index's first-ever close above 37,000. U.S. stock futures rose early Thursday. Futures tied to the Dow were up 0.2% at 7 a.m. ET.  S&P 500 and Nasdaq futures were up 0.3%. Ross Mayfield, investment strategy analyst at Baird, told CNBC the Fed's positive outlook showed that the market rally of the past six weeks was "warranted." The Associated Press, CNBC

3. Argentina devalues currency

Argentina announced it would devalue its currency, the peso, by more than 50%, the first sign of emergency measures newly inaugurated President Javier Milei promised to turn around the South American nation's struggling economy. The move will change the official conversion rate to 800 pesos per dollar, up from 365 pesos. Milei, a self-proclaimed anarcho-capitalist, called during his campaign to replace the peso with the U.S. dollar to put the economy on more solid ground after years of artificial support for the local currency. The move is one of several proposed by Milei's government to contain hyperinflation. CNN

4. Pfizer shares plunge as Covid vaccine demand drops

Pfizer shares dropped 6.7% Wednesday to a nine-year low after the giant drugmaker said its revenue could fall next year. Pfizer issued a 2024 guidance that came in below analysts' expectations after it overestimated demand for its Covid-19 vaccine. The warning fueled concerns about whether major pharmaceutical companies would be able to find new ways to boost sales. Pfizer's Covid vaccine and its treatment drug Paxlovid generated tens of billions of dollars in sales and boosted the company's global image. Vaccine sales have been disappointing since the Covid emergency ended, complicating Pfizer's planned rollout of other new drugs. The Wall Street Journal

5. Gas prices drop to lowest level of 2023

Gasoline prices have fallen to their lowest level this year, according to AAA. The national average price for a gallon of gas as of Tuesday was $3.137, down 9 cents from last week's average. The decline has come as oil prices struggle to stay above $70 per barrel, USA Today reported. OPEC+ earlier this month approved production cuts of about two million barrels a day in a bid to boost prices. "More than half of all U.S. fuel locations have gasoline below $3 per gallon," AAA spokesperson Andrew Gross said in report issued earlier this month. "By the end of the year, the national average may dip that low as well." USA Today