TLDR
- FCX stock dropped more than 7% as copper prices retreated from an all-time high of $14,875 per metric ton
- Three-month copper on the LME slipped 0.2% to $14,743 a metric ton after five straight sessions of gains
- Traders are questioning whether the copper rally has become overstretched
- Copper is up 19% this year, driven by metal flowing into U.S. warehouses ahead of potential tariffs on refined copper imports
- Surging bond yields and profit-taking across industrial metals are adding to the selling pressure on FCX
Freeport-McMoRan (FCX) dropped more than 7% on Thursday as copper prices pulled back sharply from record highs, dragging the stock down with them.
Three-month copper on the London Metal Exchange fell 0.2% to $14,743 a metric ton. That came after the metal hit an all-time high of $14,875 earlier in the session.
The retreat followed five consecutive sessions of gains, and traders are now asking whether the rally ran too far, too fast. There is no company-specific news driving the decline.
The selloff in FCX is being driven by broader commodity market forces. Surging bond yields and profit-taking across industrial metals are compounding the pressure on the stock.
Copper has had a strong 2026, climbing 19% year to date. Much of that gain came as metal flowed into U.S. warehouses ahead of potential tariffs on refined copper imports, which raised concerns about supply availability in traditional consuming regions like Europe and Asia.
Rally Under the Microscope
After five straight days of gains, traders are now reassessing whether the copper move reflected real demand or was driven more by tariff-related inventory shuffling. That uncertainty is feeding technical selling in FCX.
The selloff is described as a market recalibration rather than a response to any shift in Freeport’s own business outlook.
FCX is up more than 51% year to date, which leaves it exposed to sharp reversals when commodity momentum stalls. The stock’s tight correlation to copper prices means any pause in the metal can quickly translate into outsized moves in the equity.
Freeport’s Fundamentals Hold Steady
Freeport’s balance sheet has improved, and the company continues to generate strong cash flow. That gives it financial flexibility to manage through volatile copper markets and continue investing in its key mining assets.
The company has multi-year production growth plans, including expansion at major assets, that could support earnings even without further price increases in copper.
However, regulatory risks remain a factor. The Grasberg mine extension in Indonesia requires approvals that could come later than expected, which would disrupt mine schedules and affect one of Freeport’s most important cash-generating operations.
Rising capital needs are also a consideration. Any prolonged downturn in copper or project cost overruns could squeeze margins and cash flow.
FCX currently carries a market cap of around $110 billion. Average daily trading volume sits at roughly 14.6 million. The technical sentiment signal on the stock remains a buy despite today’s drop.
Copper’s average trading volume reflects the scale of institutional interest in the metal. The LME high of $14,875 per metric ton hit earlier Thursday remains the record for the commodity.
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