As a way to track these two segments, investors can look to materials options like the Materials Select Sector SPDR (NYSEArca: XLB), iShares U.S. The two sectors are more tightly tied to price moves in the commodities and raw materials markets, which have reached new heights recently. However, investors should note that if the Federal Reserve hikes short-term rates to dampen inflation, the yield curve would flatten, so “the spread between borrowing and lending narrows for the banking sector and results in a net interest margins squeeze,” according to BCA Research.