Producers of metals and other raw materials fell after one Federal Reserve official seemed to question market interpretations of the central bank's midweek statement.
"We aren't really talking about rate cuts right now," New York Fed President John Williams said on CNBC. "We're very focused on the question in front of us, which as Chair Powell said...is, have you gotten monetary policy to a sufficiently restrictive stance?"
Williams' comment was "extremely interesting," said Quincy Krosby, chief global strategist at brokerage LPL Financial.
"You would have gotten the impression that that's all they talked about," said Krosby. "After Williams spoke, I looked it up and suddenly [futures market] expectations for a rate cut in March eased considerably. Was he, in essence, commissioned to talk about this [in] an orchestrated attempt to dispel the notion that the Fed is preparing its rate-cut cycle? We'll see."
Shares of Quanex Building Products fell after the company posted lower sales in its fiscal fourth quarter, citing market volume softness as a result of macroeconomic challenges.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
12-15-23 1739ET
