Why Newmont Mining Stock Slipped Today

When interest rates are raised, non-interest-bearing assets tend to take a hit. That was the dynamic behind the decline in precious-metals miner Newmont's (NYSE: NEM) stock on Wednesday. Investors were particularly eager to sell the shares after the Federal Reserve's (Fed) announcement that it had raised the target range for its key rate. Newmont closed the day nearly 2% lower.

The Fed's increase of said target (by 25 basis points) didn't exactly come as a surprise, given the persistence of inflation. That's likely a key reason why precious metals (and the stocks of companies that specialize in them) didn't see a sharper fall on the news.

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