The daily business briefing: January 2, 2024

1. Investor sentiment high heading into 2024

Wall Street is starting 2024 trading riding a wave of optimism after stocks rose in 2023, boosted by the rise of artificial intelligence and a stronger-than-expected economy, according to The Wall Street Journal. The Dow Jones Industrial Average pushed into record territory and the S&P 500 came within 0.6% of a record high as inflation cooled, fueling hopes that the Federal Reserve would soon lower interest rates after an aggressive campaign to increase borrowing costs to slow the economy and bring down inflation. Stock futures edged lower early Tuesday, however, ahead of the first trading day of the new year. The Wall Street Journal, CNBC

2. 24 EVs lose tax credits

The number of electric vehicles eligible for federal tax credits of up to $7,500 fell from 43 to 19 on Monday as updated rules on battery sourcing took effect in the new year. The Treasury Department issued guidelines in December eliminating the credits for vehicles with batteries made in China. The change stripped eligibility from the Nissan Leaf, Tesla Cybertruck All-Wheel Drive, some Tesla Model 3s, Chevrolet Blazers and other vehicles, the Treasury Department said. Under the new rules, buyers can claim the credit on eligible vehicles at participating dealerships. Tesla, Nissan and Volkswagen said they were optimistic that some of their vehicles would regain eligibility after battery sourcing changes. Reuters

3. China's BYD gains on Tesla in EV production

Chinese electric-car giant BYD edged closer to overtaking Tesla as the world's top EV maker. BYD said Monday it produced more than three million new energy vehicles in 2023, including 1.6 million EVs and 1.4 million hybrids. That made BYD the world's top producer of new energy vehicles, which include battery-powered and hybrid models, for the second straight year. But Tesla, which only makes all-electric vehicles, manufactured 1.35 million cars in the first three quarters of 2023. Analysts expect the U.S. company to announce Tuesday that it roughly met its target to deliver 1.8 million electric vehicles in 2023, enough to hold onto its title as the world's top EV maker. Tesla does not make hybrid vehicles. CNN

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up

4. Reckitt/Mead Johnson Nutrition recalls infant formula powder

Reckitt/Mead Johnson Nutrition said in a news release it was recalling 675,000 cans of hypoallergenic infant formula due to the possibility of bacterial contamination. The company said the recall affected 12.6- and 19.8-ounce cans of Nutramigen Powder, which is made to manage cow milk allergies. The company said the possibility of Cronobacter sakazakii contamination was discovered in products from the recalled batches that were sampled outside the United States. There have been no reports of "illnesses or adverse events" associated with the product, which has been distributed across the U.S. The bacteria can cause meningitis and "severe, life-threatening infections," including sepsis, the company said. Business Insider

5. Delayed federal financial aid form launches with glitches

The delayed launch of the simplified Free Application for Federal Student Aid got off to a bumpy start Sunday and Monday. The new FAFSA form, which millions of students will be filling out to qualify for financial aid in the 2024-25 academic year, was only accessible for part of the day Monday, higher education expert Mark Kantrowitz told CNBC. "I am convinced that nobody has been able to submit the form," he said. "Congress required the FAFSA to be available before Jan. 1, 2024. They missed that deadline." The Education Department said Sunday it had "identified some minor issues" and was "working to resolve them." Financial aid consultant Kalman Chany urged families not to panic, and simply wait for the problems to be fixed before applying. CNBC