Materials Up as Fed Seen Cutting Rates -- Materials Roundup
Producers of metals and other raw materials rallied as traders bet the Federal Reserve would cut interest rates in the coming months in response to weak jobs data. U.S. employers added 75,000 workers in May, far shy of economists' forecasts. The data likely reflected fallout from the trade war and would have come as a shock to markets had several Fed officials, including Chairman Jerome Powell, not made reassuring statements earlier this week. "There is kind of a concerted effort by the Fed to telegraph to markets that they are prepared to act if necessary -- in Powell's own words -- 'to sustain the economic expansion,'" said Quincy Krosby, chief market strategist at Prudential Financial. "Now, in my view, this was not a guarantee from the Fed, but nonetheless, it was assuring markets that they were in fact monitoring situation and prepared to act."
-Rob Curran, firstname.lastname@example.org