cNEW YORK, Jan 17, 2026, 14:40 ET — Market closed.
- Materials Select Sector SPDR ETF (XLB) slipped Friday after copper retreated from its record highs
- U.S. markets will be closed Monday, with trading set to resume Tuesday.
- Attention shifts to metals demand indicators, driven by prices and the initial round of sector earnings
Basic materials stocks slipped to finish the week, with the Materials Select Sector SPDR ETF (XLB) dropping 0.6% on Friday. The S&P 500 Materials sector index also edged lower, falling 0.44%. 1
This shift is significant since the sector has heavily relied on copper’s rally, which just faltered. Prices slipped after briefly topping $13,000 a metric ton on the London Metal Exchange this week. Reuters Breakingviews linked the earlier surge partly to worries over tariffs. 2
“Metals have faced pressure this week as China dialed back risk and officials moved to rein in the recent retail ‘frenzy,’” Marex metals strategist Alastair Munro noted on Friday. 3
On Friday in U.S. trading, copper-linked stocks took the brunt of the losses. Freeport-McMoRan dropped roughly 2.1%, Dow slipped 1.4%, and Alcoa plunged close to 5.9%. Albemarle fell around 6.2%. In contrast, gold miner Barrick Mining climbed about 4.5%.
The broader market remained unsettled heading into the long weekend, with cyclicals such as materials struggling for traction amid mixed index moves. Wall Street closed mostly flat on Friday, Reuters reported. 4
Materials investors keyed in on a single macro datapoint: U.S. factory output climbed unexpectedly in December, driven by a jump in primary metals production. Still, activity shrank over the fourth quarter, pressured by tariff-related challenges, Reuters reported. 5
The next data drop arrives fast but not Monday. U.S. stocks shut down for Martin Luther King Jr. Day, then reopen Tuesday. 6
Investors in construction materials are zeroing in on the World of Concrete event in Las Vegas. The show offers education sessions from Jan. 19-22, with exhibits open Jan. 20-22. It’s a key moment to gauge sentiment on aggregates, cement, and nonresidential construction. 7
Earnings are another key driver. Alcoa will release its fourth-quarter results on Jan. 22 after the market closes. This report often serves as an early indicator for traders assessing pricing and demand trends in industrial metals. 8
That said, the scenario can flip quickly. Should copper’s dip deepen, or if China keeps its physical demand subdued, basic materials shares could drop sharply, especially following their solid gains earlier this year.
On Tuesday’s reopen, attention will focus on whether copper can hold steady in Asia and Europe ahead of New York’s open, and if materials can maintain recent gains ahead of Alcoa’s Jan. 22 earnings and upcoming sector reports.
