Sector movers: Precious metals miners dip ahead of Fed decision

18th Sep 2024 20:55

(Sharecast News) - Stocks fell in the middle of the week with investors opting to sit on their hands ahead of the US central bank's interest rate decision scheduled for later.

Gold futures dipped in anticipation of a 25 basis point cut to the Federal Reserve's target range for short-term rates, albeit after its recent strong run.

In a note sent to clients minutes before the Fed decision, Robert Yawger of Mizuho Securities USA said: "Talk around the gold space is that a 25 bps cut is already priced into the shiny metal, with the market needing a big 50 bps cut to supersize the upside and trade into new record territory."

Also ahead of the Fed, IG chief market analyst Chris Beauchamp said: "There are uncomfortable memories of 2007, when the Fed's rate cut at the then record highs was followed up by renewed turmoil in financial markets.

"Powell, and many investors, will be hoping the market follows 1995 instead. The situation seems much more like the latter than the former case, but so much of this cycle has been out of the ordinary that no one can rest too easy thinking about the outcome."

Going the other way, Telecommunications Service Providers and Real Estate Investment and Services helped limit declines, as did a bounce back in Aerospace and Defence.

Surely not lost on traders, in relation with the latter, were the high and rising tensions between Israel and Hezbollah in Lebannon.

Top performing sectors so far today

Telecommunications Service Providers 2,183.18 +0.46%

Industrial Transportation 4,091.65 +0.20%

Real Estate Investment & Services 2,579.90 +0.20%

Aerospace and Defence 11,131.86 +0.16%

Alternative Energy 0.00 0.00%

Bottom performing sectors so far today

Electronic & Electrical Equipment 9,967.33 -1.75%

Precious Metals and Mining 11,337.74 -1.64%

Beverages 20,558.12 -1.46%

Industrial Support Services 11,294.10 -1.40%

Medical Equipment and Services 11,143.56 -1.26%