Producers of metals and other raw materials fell after the Federal Reserve's policy statement.
The SPDR Select Sector Materials exchange traded fund, which tracks the materials industry group of the Standard & Poor's 500, retreated by roughly 1% and is now down around 7% for the year to date. Hopes the sector would hold up because of inflation were diminished by the Fed's inflation-fighting policy plans.
The Fed's board-setting committee is "of a mind to boost interest rates at their next meeting in March," said Fed Chairman Jerome Powell, in a press conference after the policy statement was released.
Mr. Powell said the jobs market has staged an impressive recovery, and said inflation is running well above Fed targets, statements that appeared to tee up rate hikes.
The central bank approved one final round of asset purchases, which will bring that stimulus program to a conclusion by March, but Mr. Powell said no decision had been made over how and when to shrink the Fed's $9 trillion securities portfolio, which has more than doubled since March 2020.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-26-22 1644ET
