Copper Declines as Tech Selloff Resumes
Copper futures slipped toward $6.40 per pound on Tuesday, resuming the decline as renewed selling in technology stocks, driven by lingering concerns over artificial intelligence valuations, weighed on the metal. Copper remains an essential material in the global AI expansion, given its extensive use in data centers, power grids and electrical infrastructure, leaving prices vulnerable to shifts in technology sector sentiment. Investors also continued to factor in a potential Federal Reserve rate hike in December amid inflationary pressures stemming from higher energy costs linked to the Middle East conflict. However, signs of diplomatic progress between the US and Iran pushed oil prices lower. On the supply side, production constraints provided some support, as copper output in Chile, the world's leading producer, dropped to its lowest level in at least two decades during the third quarter. The country is expecting only a modest rebound in production next year.
Copper futures slipped toward $6.40 per pound on Tuesday, resuming the decline as renewed selling in technology stocks, driven by lingering concerns over artificial intelligence valuations, weighed on the metal. Copper remains an essential material in the global AI expansion, given its extensive use in data centers, power grids and electrical infrastructure, leaving prices vulnerable to shifts in technology sector sentiment. Investors also continued to factor in a potential Federal Reserve rate hike in December amid inflationary pressures stemming from higher energy costs linked to the Middle East conflict.
However, signs of diplomatic progress between the US and Iran pushed oil prices lower. On the supply side, production constraints provided some support, as copper output in Chile, the world's leading producer, dropped to its lowest level in at least two decades during the third quarter. The country is expecting only a modest rebound in production next year.