Producers of metals and other raw materials initially rallied after the Federal Reserve cut interest rates by a quarter-of-a-percentage point and indicated that two more cuts are likely on the way. Gains moderated later in a volatile session.

The Fed cut rates to a range between 4% and 4.25%. On its "dot plot," the central bank indicated that most voting members of the rate-setting committee anticipate two more cuts -- one at each meeting -- during the balance of the year. That would drop the target federal funds rate to a range of 3.5% to 3.75%.

Gold futures tested record highs in late trading, in the wake of the cut.

Gains in the commodity sector moderated during Fed Chairman Jerome Powell's press conference, however, as the central banker said plans for future rate cuts could change, and said the Fed was proceeding "meeting to meeting," responding to incoming data.

Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

September 17, 2025 19:11 ET (23:11 GMT)

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