Shares in top mining companies have fallen due to concerns over AI spending and a rising dollar, which have cast a shadow over the sector's recent gains.
The stocks of BHP Group, Rio Tinto, and other major miners have been impacted by jitters about AI spending and a stronger dollar, which has made dollar-denominated commodities more expensive to buyers using other currencies.
The mining industry's fortunes have become increasingly tied to other forces, including AI hyperscalers' spending on data centers that require large amounts of metals.
BHP shares have steadied in Sydney but ended the week more than 10% below a record close on June 17, while copper accounts for more than half of BHP's underlying earnings.
Analysts say that while surging tech stocks can be vulnerable to wild swings, crucial pillars of support for their rally remain in place, including AI, electrification, decarbonization, and deglobalization.
