Stock Market Today: Dow ekes out gain as equities waver after Tuesday selloff
“Right now, there’s still a lot of uncertainty around the U.S. and Chinese manufacturing data points that are affecting more industrial based commodities, like copper and oil,” said John Caruso, senior market strategist at RJO Futures.
Economic weakness can dull demand for energy and industrial commodities, and crude-oil futures for oil have touched their lowest levels so far this year, while U.S. copper prices have dropped by more than 20% from their record high in May.
Still, questions surrounding the weakness in the Chinese economy will “ultimately subside and when the story is fully written for copper demand,” said Caruso. RJO Futures believes “electrification and power grid modification will be the catalyst going forward, as well as expected supply deficits for the foreseeable future,” he said.