Producers of metals, grains and other raw materials surged amid signs of a breakthrough in U.S.-Iran negotiations.
President Trump suspended the latest round of threatened strikes, citing signs of good-faith negotiations among Iranian leadership. The SPDR Select Sector Materials exchange-traded fund, which tracks the materials industry group of the S&P 500, rose by more than 3%, shrugging off recent weakness.
The shutdown of the Strait of Hormuz had sparked fears of energy and fertilizer shortages that would weigh on demand for other commodities. Commodities companies initially tumbled Thursday after the reported 1.1% increase in the producer price index, a more heated reading of wholesale inflation than economists had anticipated. That drove up the relative value of the U.S. dollar. Dollar-sensitive gold futures closed at their lowest level in more than six months.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
