The S&P 500 (SP500) on Friday posted another week of hefty losses, falling -3.29% for the five-day session. Materials was the top loser, falling -4.99%, and the Materials Select Sector SPDR ETF (XLB) -4.89%.
Gold sunk to six-year lows and silver slid to its lowest in more than two years during the week, in an environment of a strengthening dollar and rising global bond yields. December Comex gold (XAUUSD:CUR) reached a low of $1,705.60/oz, and December silver (XAGUSD:CUR) fell to $17.61/oz after falling as much as 2.4% in earlier trading.
Aluminum prices too slid to 16-month lows on Thursday while other base metals fell on the London Metals Exchange. According to Reuters, benchmark aluminum futures (LMAHDS03:COM) on the LME recently traded -2.3% to $2,305/metric ton, and LME tin -6.8% to a 19-month low $21,240/ton after falling as much as 9%; zinc, copper, nickel and lead also are lower.
After a recent rebound, copper reversed sharply this week, with Comex front-month copper (HG1:COM) closing Thursday -2.9% at $3.4145/lb, the lowest settlement value since July 26. Prices fell on worries that Europe’s energy crisis, tighter Federal Reserve monetary policy and China’s harsh COVID-19 lockdowns will hurt demand for metals and global economic growth.
Take a look at this week’s top gainers among basic material stocks ($2B market cap or more):
- Turquoise Hill Resources (TRQ) +8.37%; Shares jumped after the firm after it reached a deal for Rio Tinto (RIO) to acquire the remaining shares in the miner that it does not already own.
- Axalta Coating Systems (AXTA) +0.69%
- Posco (PKX) -0.40%
- Corteva (CTVA) -0.58%
- GCP Applied Technologies (GCP) -0.70%
The week’s top losers were:
- Scotts Miracle-Gro (SMG) -14.52%
- BHP Group (BHP) -13.76%
- United States Steel (X) -13.07%
- Companhia Siderurgica Nacional (SID) -11.74%
- Alcoa (AA) -11.73%
Other materials ETFs to watch: iShares Global Timber & Forestry ETF (WOOD), Materials Select Sector SPDR ETF, Vanguard Materials ETF (VAW), iShares Global Materials ETF (MXI), SPDR S&P Metals and Mining ETF (XME), VanEck Vectors Gold Miners ETF (GDX), iShares MSCI Global Gold Miners ETF (RING), Global X Copper Miners ETF (COPX).