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Featured Student Column: Equity Research Report
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The copper industry is witnessing a surge in demand due to its essential role in modern technologies such as Artificial Intelligence, Data Centers, Electric Vehicles (EVs), humanoid robotics, and urban air mobility (UAM), driven by its superior electrical conductivity and thermal properties. With an estimated global supply of 6.3 billion metric tons, copper struggles to meet the exponential demand fueled by economic growth and electrification trends, as recycling and alternatives fall short of closing the gap, potentially leading to long-term price increases sensitive to global economic conditions and U.S. tariff policies. Emerging industries like EVs, which use significantly more copper than traditional vehicles (101 kg vs. 23 kg), and UAM, with eVTOL aircraft requiring 100-600 kg per unit, are poised to further strain supply, while copper prices show strong correlations with U.S. GDP (0.73) and the S&P 500 (0.9), indicating volatility tied to economic and policy shifts, such as potential tariffs under the Trump administration that could either spike prices or trigger a drop to $4.00 - $4.10 per pound if revoked. - Mar 28th
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Recommended Articles
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The AP News article, published on April 9, 2025, reports that President Trump has paused tariffs on most nations for 90 days amid a global market meltdown, while raising tariffs on Chinese imports to 125%. This shift follows intense market volatility, with the S&P 500 surging 9.5% (closing at 548.62 USD per the latest financial data) after the announcement, reflecting relief from investors. However, Trump’s persistence with high tariffs on China, despite recession fears, continues to unsettle markets, with experts warning of potential inflation and economic slowdown as China retaliates with its own levies.
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The Wall Street Journal article, dated April 5, 2025, reports that Chile, a major copper producer, plans to cut copper prices due to a global economic slowdown signaled by President Trump’s tariffs. The tariffs, escalating trade tensions, have dampened demand forecasts, with copper prices dropping nearly 5% this week amid a broader market rout. Chile’s state-owned Codelco, the world’s largest copper supplier, is adjusting prices to stay competitive as industrial activity weakens, reflecting broader concerns about a potential recession impacting commodity-reliant economies.
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The CNBC article, dated April 8, 2025, details a turbulent day for U.S. stock markets as the S&P 500 briefly entered bear market territory, dropping nearly 20% from its February high, before closing down 1.57% at 4,982.77. The Dow fell 320.01 points to 37,645.59 after an earlier 3.9% gain faded, driven by fears of impending 104% tariffs on China set to take effect just after midnight. The Nasdaq declined 2.15% to 15,267.91, with tech giants like Apple (down over 5%) hit hard by tariff concerns, though some sectors like coal stocks rose on anticipated domestic production boosts. Market volatility persists as investors brace for Trump’s tariff policies and their economic fallout.
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The BBC News article, published on April 9, 2025, explores how three years of war have transformed Ukraine's President Volodymyr Zelensky from a comedian to a resolute wartime leader. It highlights his critical role in maintaining global attention on Ukraine, especially after deciding to stay in Kyiv during the 2022 Russian invasion. An advisor notes Zelensky’s push for visibility to secure international support, while recent shifts suggest he’s adopting a more conciliatory tone with European allies, reflecting Ukraine’s reliance on the U.S. amid ongoing conflict with Russia.
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Stony Finance Lab is a community-driven finance network that aims to promote personal financial responsibility and helps the community to achieve financial confidence and financial independence through life-long learning. The emails are to distribute news and information on finance research, events, jobs related to personal finance, investments of financial and digital assets, academic finance, and entrepreneurship. All emails are for information sharing only and shall not be deemed as financial advice. The Lab is not liable for the consequence of using any information contained in the emails.
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