Producers of metals and other raw materials fell as the dollar surged against rivals in the wake of hotter-than-anticipation inflation data.
The Consumer Price Index rose 3.5% in March, gaining pace from February levels. One strategist said the data did not change the overall down-trend of inflation or the Fed's rate plans. market reaction was overdone.
"The Fed has been very clear that they're paying much closer attention to Personal Consumption Expenditure index than they are to the CPI read, and the PCE is still moving in the right direction," said Oliver Pursche, senior vice president at financial advisory Wealthspire.
While traders have accurately repriced the number of likely interest-rate cuts in recent weeks, original expectations were perhaps overly optimistic in the first place, said Pursche.
Gold futures held near record highs above $2150 an ounce, in anticipation of a shift in central-bank policy.
Federal Reserve officials neared agreement last month on a plan to slow the runoff of their $7.4 trillion in asset holdings, according to minutes of their meeting released Wednesday. Gold futures closed around all-time highs above $2300 an ounce.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
04-10-24 1712ET
