Copper Falls for Third Day as Strong US Inflation Spurs Selloff

(Bloomberg) -- Copper declined with other base metals after stronger-than-expected US consumer prices spurred bets on more aggressive tightening by the Federal Reserve.

A risk-off tone is sweeping markets — with technology stocks bearing the brunt — after data on Wednesday showed US inflation running at the fastest pace in five months. Copper on the London Metal Exchange was down 1.1% to $14,338 a ton by 12:11 p.m. Shanghai time, heading for a third daily decline.

The US inflation print raises the odds of more interest rate hikes by the Fed in coming months to cool the economy, an outcome that's potentially negative for metals by hurting demand and raising manufacturing costs. Copper reached a record high last month but has since wavered amid uncertainty over the Fed's pathway.

"The US CPI data was well beyond forecasts, strengthening inflation expectations and pressuring copper prices," Guangzhou Futures wrote in a note. Other metals also fell on the LME, with aluminum touching its lowest since last year.

Copper is still up more than 15% in 2026 after a huge flow of metal to the US — ahead of anticipated import tariffs — left markets elsewhere underserved. But optimism over demand from artificial intelligence infrastructure has also spurred copper bulls, making the metal exposed to headwinds for that sector.

AI stocks were among the biggest losers on Thursday as investors rushed from risk. South Korea's equity benchmark fell 8% as investors grow nervous about the sustainability of spending on the technology.

A decline for copper at market close would mark the metal's third daily drop — the longest such stretch since June.