Why These 3 Commodities Stocks Are Tanking This Week
Several forces are coming together to reverse the surge in commodities and related stocks. Just so far this week, shares of these three stocks that rely on commodity prices are tumbling:
Even with this week's slide, shares of Nucor, Hecla Mining, and Freeport McMoRan have surged 78%, 22%, and 34%, respectively, year to date. The current reversal comes as several factors emerged to turn the tide this week. First, China has taken an active role to curb rising commodity prices by releasing industrial metals including zinc, aluminum, and copper from its national reserves, according to Reuters. Also, in the U.S. the Federal Reserve released its current thoughts on the economy during this week's Fed meeting. The latest view on inflation and interest rates has the dollar at a two-month high. Commodity prices generally move inversely to the dollar, since they are mostly priced in U.S. dollars globally.
Source Fool.com
