So far, the new year hasn't been particularly good for the markets. The Nasdaq Composite fell 1.18% on Wednesday, the second trading session of 2024, building on its worst daily performance in months. Investors appeared to be selling last year's tech winners, while Apple, Nvidia, Tesla and Meta all suffered losses. The S&P 500 and the Dow Jones Industrial Average also posted slight declines on the day. Meanwhile, the yield on 10-year Treasury bonds briefly topped 4 percent on Wednesday. Follow live market updates.
US Federal Reserve Chairman Jerome Powell attends a press conference in Washington, DC, USA on December 13, 2023.
Liu Jie | Xinhua News Agency | Getty Images
The Federal Reserve said it was still not quite ready to cut interest rates. The Fed appears to believe that rate cuts are likely in 2024, but it is not certain when this might happen. The Fed released the minutes of its last meeting on Wednesday, in which it kept the key interest rate stable in a range between 5.25% and 5.5%. Members at that meeting also said they expected cuts of three-quarters of a percentage point by the end of 2024, noting that inflation concerns had eased. However, they struck a cautious tone in the minutes, with several members saying interest rates may have to remain high if the right conditions are not met. Wednesday's press release noted an “unusually high level of uncertainty” about the policy path and said future decisions would depend on “how the economy develops.”
Cadillac vehicles will be available for sale on January 31, 2023 at the Zeigler Cadillac of Lincolnwood dealership in Lincolnwood, Illinois.
Scott Olson | Getty Images
General Motors just had its best year for vehicle sales since 2019. The automaker reported Wednesday that it sold 2.6 million vehicles in 2023 – up 14.1% from 2022. The company is therefore in line with general industry expectations. Still, GM's electric vehicle sales have been disappointing this year. Electric vehicles accounted for just 2.9% of the company's total sales last year, and most of that came from now-discontinued Chevrolet Bolt models. The automaker said it would increase its electric vehicle production through 2024 and offer $7,500 incentives for any models that no longer meet the requirements for $7,500 tax credits.
A cargo ship crosses the Suez Canal, one of the most important man-made waterways, on December 29, 2023 in Ismailia, Egypt.
Fareed Kotb | Anadolu | Getty Images
Oil prices rose more than 3% on Wednesday as tensions remain high in the Red Sea. The United States warned Iran-backed Houthi fighters in Yemen not to attack ships in the region. To avoid the possibility of conflict, airlines have already withdrawn more than $200 billion in trade flows from the Red Sea. Portal also reported that this affected oil prices. Protests in Libya led to the closure of the Sharara oil field, which produces 300,000 barrels per day.
A Xerox banner in front of the New York Stock Exchange on January 23, 2018.
Adam Jeffery | CNBC
Xerox plans to cut 15% of its workforce this quarter. A previous SEC filing said the company had 20,500 employees, meaning the layoffs would affect about 3,075 employees. Xerox — the digital printing and document management technology company that has become so ubiquitous that its name is still used as a verb — also said it plans to introduce a new organizational structure and operating model. That includes reshaping its leadership team and simplifying its products. Xerox shares fell more than 12% on Wednesday following the announcement.
— CNBC's Lisa Kailai Han, Jeff Cox, Michael Wayland, Spencer Kimball, Lori Ann LaRocco and Ashley Capoot contributed to this report.
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