Producers of metals and other raw materials fell as fears about the economic outlook offset optimism about a 2024 rate cut.
Federal Reserve Chair Jerome Powell suggested he had shifted his focus to the timing of interest-rates cuts now that the balance between fighting inflation and maintaining a solid labor market has changed. The path remains open for the Fed to engineer a "soft landing," said Lindsay Rosner, global head of multi-asset fixed income with Goldman Sachs Asset Management.
Another strategist said the landing may not feel so soft for the stock market, however. "It's possible that the Fed may conclude a rate cut in September is warranted," said Brent Schutte, chief investment officer at money manager Northwestern Mutual Wealth Management. "Unfortunately, a 25-basis-point reduction at that time may not be the magic elixir some investors are seeking." The previous four recessions all officially began after the Fed had begun cutting rates, Schutte noted.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
07-09-24 1737ET
