Welcome to Markets Desk, your midday read on the stories moving money and markets.
Richmond Fed President Tom Barkin said Thursday the Federal Reserve raised interest rates for the first time since mid-two thousand twenty three, citing stubborn inflation driven by tariff costs, higher gasoline prices, and surging AI investment pushing up prices for technology equipment. Barkin notably dismissed fears of an AI-driven economic disruption, saying the so-called AI apocalypse has not arrived.
Shifting to real assets, REITs are drawing fresh attention after a sustained selloff tied to rate fears has pushed dividend yields on some names as high as twelve point three percent. The tension here is classic — elevated rates compress valuations, but for income-focused investors, the discounted cash flows now on offer in real estate investment trusts represent a compelling entry point if the Fed cycle is nearing its peak.
Meanwhile, copper is quietly becoming one of the more compelling commodity stories of the year. Zero new copper deposits were discovered last year, a stark supply signal that puts meaningful upward pressure on prices at precisely the moment electrification and infrastructure demand are accelerating. Copper ETFs tracking this dynamic are drawing renewed interest from both macro and sector-focused investors.
That's the tape. Markets Desk, signing off the floor.
