Producers of metals and other raw materials fell sharply as inflation nerves drove up the relative value of the dollar.
One strategist said faith that the Federal Reserve could engineer a soft-landing may be overstated in the valuations of cyclical sectors. "The markets could be on the path of immaculate disinflation to an economic soft landing," said Kyle Rodda, senior market analyst at online brokerage Capital.com. "The Fed is projecting as much."
Disinflation typically coincides with a period of slowing earnings growth, which is not reflected in earnings estimates, Rodda said. "It suggests that between rates markets and earnings expectations, something's got to give."
Spot prices for triuranium octoxide, the most widely traded form of uranium, hit $92.50 a pound on Monday, continuing a torrid run that has seen prices of the nuclear fuel more than double since Russia invaded Ukraine.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-09-24 1850ET
