Wedoany.com News - Recently, driven by soaring precious metal and copper prices, the U.S. basic materials sector has surged strongly. The Materials Select Sector SPDR ETF (XLB) closed up 0.91% at $49.97 on Friday, approaching its 52-week high.

Specifically, silver prices broke through $100 per ounce, and gold prices also set a closing record near $4988, significantly boosting the stock prices of mining companies such as Freeport-McMoRan and Newmont. Meanwhile, copper futures surged 2.92% to $5.9475 per pound. Franklin Templeton strategist Chris Galipeau pointed out that corporate earnings are the main driver of the current market. The sector's rise coincides with the dense earnings season, with the S&P 500 materials sector's profit performance leading the way. However, analysts also warn that the precious metals rally may trigger profit-taking. The market's next focus shifts to the Federal Reserve's policy meeting on January 27-28, whose decisions will have a significant impact on the U.S. dollar and commodity-related stocks.