Copper Extends Fall on Tech Selloff
Copper futures fell toward $6.5 per pound on Friday, sliding for the second straight session as disappointing earnings updates triggered another selloff in tech and AI stocks. The metal plays a crucial role in the global AI expansion due to its extensive use in data centers and power infrastructure, leaving prices particularly sensitive to shifts in technology market sentiment. Investors also grew increasingly concerned about a potential Fed rate hike later this year following hot PCE inflation data and persistent energy-driven price pressures. Despite the recent pullback, copper continued to receive support from tightening physical supplies in China, the world’s largest consumer of the metal, as reflected in rising import premiums. This trend underscores growing competition for copper supplies both within and outside China, as earlier concerns over potential US import tariffs prompted traders to redirect shipments toward American warehouses, reducing availability in other markets.
Copper futures fell toward $6.5 per pound on Friday, sliding for the second straight session as disappointing earnings updates triggered another selloff in tech and AI stocks. The metal plays a crucial role in the global AI expansion due to its extensive use in data centers and power infrastructure, leaving prices particularly sensitive to shifts in technology market sentiment. Investors also grew increasingly concerned about a potential Fed rate hike later this year following hot PCE inflation data and persistent energy-driven price pressures.
Despite the recent pullback, copper continued to receive support from tightening physical supplies in China, the world’s largest consumer of the metal, as reflected in rising import premiums. This trend underscores growing competition for copper supplies both within and outside China, as earlier concerns over potential US import tariffs prompted traders to redirect shipments toward American warehouses, reducing availability in other markets.