Producers of metals and other raw materials fell as traders braced for the impact of higher interest rates.
Commodity prices were among the assets that received a big lift from the Federal Reserve's extraordinary stimulus in recent years. "Rate hikes are now right around the corner," said strategists at brokerage Goldman Sachs, in a recent research note.
"Labor market strength has made the Fed more sensitive to high inflation and less sensitive to slowing growth." With rate hikes on the horizon, investors are "reassessing" the value of all assets, said Joe Kinahan, chief market strategist at TD Ameritrade. Still, the Goldman strategists said investors appear to be already positioned for rate hikes, and noted that the stock market usually performs relatively well during periods of rising rates.
The price of lumber gathered upward momentum in the fourth quarter, The Wall Street Journal reported, and strong housing data Thursday boded well for the price outlook.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-20-22 1636ET
