Producers of metals and other raw materials fell sharply as the dollar strengthened to test its highest levels of the year to date.
The SPDR Select Sector Materials exchange-traded fund, which tracks the materials industry group of the S&P 500, is roughly flat for 2023 so far, giving back year-to-date gains of roughly 10% at the start of August.
Investors had wagered that global demand for commodities would continue to grow even as central banks raised interest rates. The relentless march upward of Treasury yields in the last month or so has caused investors to reverse those bets.
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(END) Dow Jones Newswires