Copper Falls to One-Week Low as Stocks Slide and Brent Rises 2.4%
Key Facts
Copper fell to a one-week low on the London Metal Exchange as selling pressure in technology stocks coincided with rising oil prices, adding to concerns about global growth. EL7 data showed copper at 6.482 on October 30, compared with the previous day’s close of 6.6025. The metal’s move on Friday followed broad losses in U.S. stocks, while Brent crude climbed close to the upper end of its range since the war with Iran drove up oil prices and inflation. Bloomberg linked copper’s decline to weaker risk appetite, saying falls in technology stocks and higher oil prices fueled concern about the global growth outlook. The metal was also heading for a slight loss in October, ending a 3-month run of gains.
Losses in U.S. stocks reflected a broader sell-off in the same session. The S&P 500 fell 1.8% on October 30, its worst daily performance since June, while the Nasdaq Composite dropped 2.9% and the Dow Jones Industrial Average declined 1.1%. Technology stocks came under the heaviest pressure, leading the Nasdaq lower, while losses spread to other major indexes. The performance puts copper’s move in a broader context of investors reassessing risks on a day when stock losses coincided with higher energy costs. Brent crude rose 2.4% to $113.43 a barrel on Friday, nearing the upper end of its range since the war with Iran pushed up oil prices and inflation.
Corporate results and outlooks were among the main sources of pressure on the technology sector. Intel shares fell 28.6% after its earnings outlook came in below analysts’ estimates, marking its biggest drop since 1974, according to the Associated Press. Amazon shares also fell 1.4% after the company reported weaker-than-expected summer earnings. The moves reflected investors’ sensitivity to companies’ ability to turn high spending into tangible financial results. A portfolio manager, describing the shift in sentiment toward AI trades, said: "We’re leaving the hopes-and-dreams phase and entering the show-me-the-results phase." With that shift, the actual return and how quickly it materializes became central to the debate weighing on technology stocks, alongside copper’s weakness.
Concerns about returns on AI investment were present in the market during the week, ahead of Friday’s session. A portfolio manager said the debate centered on whether AI would deliver a positive return and, if so, how long it would take. In Thursday’s session, the Nasdaq fell 1.4% and the S&P 500 declined 0.3% after Alphabet shares dropped 12.6% amid concerns about the company’s growth and its AI spending. These moves show that the concern was not limited to one company or one session, but preceded Friday’s losses and surrounded valuations of technology companies and their spending. For copper, this caution about technology-related growth coincided with rising oil prices, the two factors Bloomberg linked to the metal’s decline.
Behind the rise in oil, the head of U.S. Central Command briefed President Donald Trump on military options related to Iran on Thursday, October 29, according to the report that could be verified. This development preceded the documented market move on Friday, October 30, when Brent rose 2.4% to $113.43 a barrel; the difference in dates places the military briefing before the recorded oil rise, not on the same day. Crude climbed at a time when energy prices and inflation had already risen because of the war with Iran. Alongside stock losses and growth concerns, higher oil prices added another source of pressure on copper at month-end. The available data do not include a copper close on November 1; the latest daily close reported is 6.482 on October 30.