Mining Stocks Rally Crumbles on Stalled Copper Tariff Plan

The mining sector took a significant hit on Thursday as US producer price data and rising crude oil prices pushed the odds of a Federal Reserve rate hike next week to about 70%. The slump was exacerbated by news that the White House's copper tariff plan has stalled, causing copper prices to plummet.

Comex copper for December delivery fell as much as 5.4% to $6.5160 a pound in New York, down 5.3% from its record high of $6.8885 just a day earlier. Silver and gold prices also took a hit, with silver dropping as much as 6.1% to $64.455 an ounce.

Freeport-McMoRan, the largest listed copper producer, was down over 7% in early afternoon trade, wiping out around $10 billion from its market value. Other major mining stocks such as Teck Resources, Southern Copper, and Antofagasta also suffered significant losses.