U.S. metals and mining stocks posted their strongest one-day rally of 2024 on Tuesday, driven by China’s unexpected and substantial monetary easing.
The People’s Bank of China’s (PBoC) stimulus measures, including cuts to the reserve requirement ratio and repo rates, boosted global demand for raw materials, sparking a surge in metal prices and mining stocks.
The SPDR S&P Metals & Mining ETF (NYSE:XME) surged 4.2%, marking its best one-day performance since November 2023. The move reflected heightened optimism in the sector, which benefits heavily from demand in China, the world's largest consumer of raw materials.
Chart: Metals & Mining Stocks Mark Best Day In Almost A Year
