Producers of metals and other raw materials rallied as traders rotated back into sectors tied to economic growth rates.
Commodities stocks suffered a rout last week after the Federal Reserve's commentary pushed up the value of the dollar and hurt inflation bets.
"Supporting the Fed's call that inflation is somewhat transitory, a confluence of events led to sharp depreciation in corn, gold, lumber, copper and other commodities: easing of port congestion, a strengthening U.S. dollar and China's commitment to begin selling off industrial metal," said Saira Malik, chief investment officer and head of global equities at money manager Nuveen, in a note to clients.
Despite the Fed's "hawkish" tone, the central bank remains accommodative, which is likely to support the value of "reflation" sectors, said Ms Malik.
Metals, lumber and most agricultural futures recouped some of their hefty losses from last week Monday. Grain prices rebounded after initial declines, as a summer drought threatened some harvests in the Midwest.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
06-21-21 1636ET
