DATA GRAPHICS | Data Byte
Biotech indexes spike as Fed signals rate cuts in 2024
A shift in monetary policy could spur a risk-on market, raising the possibility of biotech outperformance next year
December 13, 2023 11:55 PM UTC
The XBI was trading flat most of Wednesday until Federal Reserve Chairman Jerome Powell indicated that the Fed now anticipates three interest rate cuts in 2024. The XBI promptly surged $3.79 (5%) to close at $83.97.
Wednesday’s close is the highest for the closely followed ETF since July. The XBI began climbing in early November, when the yield for 10-year Treasury bonds started to fall as investors anticipated a change in Fed policy. The XBI is up 27% since the Nov. 1...