Producers of metals and other raw materials rose sharply as traders positioned themselves for a rate cut in the coming months.
The 2023-24 stock-market rally has been narrowly focused on the technology sector, but the prospect of an imminent rate cut could extend the recent broadening of the rally, according to one longtime Wall Street strategist.
"The current bull market is the only one in post-war history which has faced Federal Reserve tightening throughout its entire 20-plus-month existence," noted Jim Paulsen, in his independently produced newsletter.
"Rather than deciding inflation is just now becoming a problem and the Fed needs to begin tightening, the U.S. is finally deciding the war on inflation has been won and the Fed can finally start easing."
Gold futures, which are particularly sensitive to interest-rate expectations, closed at all-time highs. The August gold contract climbed $38.90, or 1.6%, to settle at $2,467.80 an ounce, topping the previous record-high $2,438.50 settlement from May 20.
Gold miner Newmont rose by more than 1% to bring its year-to-date gains to 18%. Anglo Australian mining giant Rio Tinto received approvals it needs for a huge iron-ore mine it is building in Africa, as it reported a rise in second-quarter shipments of the steel ingredient from its operations in Australia.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
07-16-24 1707ET
