New York, Jan 24, 2026, 13:19 EST — Market closed.
- Materials Select Sector SPDR ETF (XLB) climbed 0.9% Friday, closing just shy of its 52-week peak
- Copper futures surged almost 3%, while silver broke past $100 an ounce, boosting miners and companies tied to metals
- Attention turns to the Fed’s January 27-28 meeting amid a busy week of earnings
U.S. basic materials stocks wrapped up Friday on an upbeat note, as the Materials Select Sector SPDR ETF — which tracks a mix of sector shares — climbed 0.91% to $49.97. That put the fund just shy of its 52-week peak at $49.99, closing roughly 2.6% higher than the previous Friday’s finish. (Investing)
The sector rallied late in the week, cutting through a mixed Wall Street close. The Dow dipped 0.58% on Friday, the S&P 500 barely moved, and the Nasdaq inched higher. Despite that, all three indexes finished the week in the red, reacting to tariff news and changing risk sentiment. (Reuters)
Why it matters now: materials are moving in step with commodities, which are leading ahead of a packed week of earnings and a Fed verdict. “Earnings are the driver,” said Chris Galipeau, senior market strategist at Franklin Templeton, as investors assess if solid profits can counterbalance policy uncertainty and geopolitical tensions. (Reuters)
Precious metals dominated Friday’s action. Silver blasted past $100 an ounce, and gold climbed to a record close to $4,988, fueling buying in gold and silver mining stocks. “Silver is in the midst of a self-propelled frenzy,” said StoneX analyst Rhona O’Connell. BNP Paribas strategist David Wilson warned that profit-taking could come “sooner rather than later.” (Reuters)
Copper climbed as well. U.S. copper futures closed up 2.92% at $5.9475 a pound on Friday, a surge that usually impacts miners, smelters, and metals producers throughout the basic materials sector. (Investing)
Freeport-McMoRan threw in a company-specific boost after topping quarterly profit forecasts, driven by rising copper and gold prices despite a drop in output following an accident at Indonesia’s Grasberg mine. CEO Kathleen Quirk described the incident as “humbling” during an investor call, as the company lowered its 2026 production forecast and focused on getting the Grasberg site back on track. (Reuters)
Freeport shares climbed 2.65% to $60.41 on Friday, with Newmont up 2.15% at $124.31, as miners tied to bullion reacted to the recent surge in precious metals. (MarketWatch)
Talk of deals and restructuring kept the spotlight on major miners. Barrick’s proposal to spin off its North American assets depends on Newmont’s approval rights within their Nevada Gold Mines joint venture, Reuters reported. This highlights that corporate structure, not just metal prices, can steer the sector. (Reuters)
On the fundamentals front, earnings season is weaving into the materials narrative. FactSet reported that the S&P 500’s blended year-over-year earnings growth rate for Q4 hit 8.2% as of Friday. Leading the charge were the Information Technology and Materials sectors. Looking ahead, 103 S&P 500 companies are set to report results next week. (FactSet Insight)
Next week brings key sector earnings. Nucor will hold its Q4 2025 earnings call on Jan. 27 at 10:00 a.m. ET. Dow’s Q4 2025 report follows on Jan. 29 at 8:00 a.m. ET. (Nucor Investors)
The rally carries a familiar risk: when metals surge on momentum, basic materials stocks can quickly reverse if prices dip, inventories build, or rates and the dollar turn against the trade. A drop in copper or a steeper selloff in precious metals would probably hit miners first, then ripple through the sector.
The next major event is the Fed’s two-day meeting from Jan. 27 to 28. The policy decision drops at 2:00 p.m. ET on Jan. 28, followed by a press conference at 2:30 p.m. ET. These moves typically jolt the dollar and ripple through commodity-linked stocks. (Federalreserve)
