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·Recession·Updated 5d ago

Copper Plunges 2.37% – Recession Signal or China Demand Fears?

Copper (CPER) dropped sharply, the second-worst performer after EEM, raising recession alarms. Combined with a slight VIX uptick and flat equities, the message is caution.

Key takeaways

  • 01

    Copper (CPER) dropped sharply, the second-worst performer after EEM, raising recession alarms.

  • 02

    Combined with a slight VIX uptick and flat equities, the message is caution.

  • 03

    Copper's 2.37% decline to $38.27 is a classic recession indicator, given copper's role as 'Dr.

Full analysis

Copper's 2.37% decline to $38.27 is a classic recession indicator, given copper's role as 'Dr. Copper' for global industrial demand. The VIX (VIXY) rose 0.87% to $17.49, aligning with risk-off sentiment. Meanwhile the S&P 500 (SPY) fell a modest 0.46% to $760.76, and small caps (IWM) dipped 0.3%. High yield bonds (HYG) were nearly flat, suggesting credit markets are not yet pricing in severe stress. Traders should watch for follow-through on copper and whether the yield curve inverts further. Key contracts: CPER $38.27, VIXY $17.49, SPY $760.76, IWM $288, HYG $78.53.

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