'Won­der­ful Christ­mas gift': Fed's sur­prise rate-cut plan springs hope of 2024 biotech mar­ket re­bound

Though Christ­mas is right around the cor­ner, the long biotech win­ter may soon be over.

The Fed­er­al Re­serve an­nounced Wednes­day it plans to cut in­ter­est rates three times next year, set­ting the stage for the first cuts since it be­gan rais­ing rates in ear­ly 2022 and open­ing the door for biotech’s long-await­ed come­back.

Years of high in­ter­est rates have been a sig­nif­i­cant ob­sta­cle to rais­ing mon­ey and clos­ing IPOs since the pan­dem­ic boom cooled down in ear­ly 2022. The Fed’s an­nounce­ment brought a lev­el of op­ti­mism un­seen since then to a sec­tor be­set by lay­offs and falling val­u­a­tions.

Unlock this article instantly by becoming a free subscriber.

You’ll get access to free articles each month, plus you can customize what newsletters get delivered to your inbox each week, including breaking news.

SIGN UP LOG IN BECOME A PREMIUM SUBSCRIBER