Core Viewpoint - Copper prices have reached an all-time high above $12,000 a ton, driven by severe mine outages and trade disruptions linked to US tariffs, positioning the metal for its largest annual gain since 2009 [1]. Price Movement - Prices increased by as much as 1% to $12,044 a ton on the London Metal Exchange, marking a more than 33% rise this year [2]. - The anticipation of tariffs on copper has significantly influenced price increases, leading to a bidding war among manufacturers for limited supplies [2]. Global Trade Impact - Despite a rapid deterioration in copper usage in China, which consumes about half of the world's copper, prices have continued to rise due to extreme disruptions in global trade flows [3]. - There is an expectation that prices will continue to increase as traders ship larger volumes of copper to the US in anticipation of potential tariffs [3]. Supply Disruptions - Severe supply disruptions have occurred due to mine outages across the Americas, Africa, and Asia, raising concerns about a major market deficit that could further drive prices up [4]. - Deutsche Bank has projected a 3% drop in output from the world's largest miners this year, with potential further declines expected by 2026 [4]. Future Market Outlook - Analysts at Morgan Stanley predict that the global copper market will face its most significant deficit in over 20 years next year, with demand expected to exceed supply by approximately 600,000 tons [5]. - Supply risks have been a persistent concern in the copper industry, with bullish forecasts from banks and investors highlighting a surge in usage in sectors like electric vehicles and renewables [6]. - Citigroup has suggested that prices could reach $15,000 in a bullish scenario, driven by a weakening dollar and US interest rate cuts, which would enhance copper's attractiveness to investors [6].

Market Overview - The trading day ended with significant declines across major indices, with the S&P 500 down approximately 180 points or 2.7%, marking its worst day since April 10th [7] - The NASDAQ 100 and NASDAQ composite both fell over 3%, also their worst performance since April 10th [7] - The Russell 2000 index dropped more than 74 points or 3% [7] Sector Performance - The technology sector was particularly hard hit, declining about 4%, with semiconductor stocks experiencing notable losses [9] - Consumer staples were the only sector to show positive performance, up about 0.33%, indicating a defensive trade [8][9] - A broad-based sell-off was observed, with 1,425 stocks declining compared to only 78 advancing [8] Company-Specific Movements - MP Materials and USAA, involved in rare earths, saw their stocks rise by 8.5% and 5% respectively, following China's new export curbs [10][11] - Protagonist Therapeutics shares surged nearly 30% after reports of Johnson & Johnson's interest in acquiring the company [13] - Applied Digital's shares increased by over 16% due to positive earnings and advanced talks for a new data center [14] Notable Declines - Levi Strauss experienced a 12% drop, its worst intraday decline since April, after its earnings guidance fell short of expectations [16][17] - Venture Global's stock plummeted nearly 25% following a legal dispute loss with BP, which could have significant financial implications [18] - The VanEck Semiconductor ETF fell almost 6% despite being up 34% year-to-date [19] Economic Context - The market's downturn coincided with concerns over a potential U.S. government shutdown, which has limited the release of economic data [20][27] - Upcoming earnings reports from major banks, including Goldman Sachs and Bank of America, are anticipated to provide insights into consumer spending and economic health [28][29]