Producers of metals and other raw materials rallied as traders jumped back into cyclical sectors, reviving the "reflation trade."
One strategist said the stock market bust led by cyclical sectors on Monday was largely an emotional event. "It makes no sense and, there is no reason for it," said Oliver Pursche, vice president at financial advisory Wealthspire.
"Nothing happened between Thursday and Monday morning that would warrant a sharp correction, much like nothing happened between Monday afternoon and this morning to warrant a rebound."
Shares of miners rose, adding to gains in the wake of strong earnings from BHP Group and Anglo American. Rio Tinto said one of four furnaces at the Richards Bay Minerals mineral-sands business in South Africa will be shut off, a knock-on effect from security issues at the mines.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
07-21-21 1628ET
