On June 5, VanEck Rare Earth and Strategic Metals ETF fell 8.12% in regular trading, trading at $89.03/share, with trading volume of $79.87 million.
On the news front, the U.S. May non-farm payroll data came in significantly above market expectations, rapidly boosting market pricing of further monetary tightening by the Federal Reserve. Interest rate futures data showed the probability of a Fed rate hike in December jumped from 48% to 63%, with rate cut expectations nearly completely erased.
Rising rate hike expectations directly pressured valuations across the non-ferrous metals and rare earth sectors. Precious metals and rare earth-related stocks fell sharply across the board, with MP Materials declining 7.46% and Southern Copper falling 6.8% on the same day. Higher interest rates increase the opportunity cost of holding non-yielding commodities and compress equity valuations in the materials sector.
The fund normally invests at least 80% of its total assets in securities that comprise its benchmark index, which includes companies primarily engaged in producing, refining, and recycling rare earth and strategic metals and minerals.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
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