Freeport-McMoRan Navigates Tariff Tailwinds as $440M Volume Ranks 229th in Market Activity

On August 11, 2025, Freeport-McMoRan (FCX) closed with a 0.98% decline, trading with a volume of $0.44 billion, ranking 229th in market activity. Recent developments surrounding U.S. copper tariffs have intensified scrutiny on the miner’s strategic positioning. Analysts at Morgan Stanley highlighted that Freeport-McMoRan could benefit from President Trump’s 50% tariffs on semi-finished copper products, including rods, wires, and sheets—categories that constitute the majority of its North American sales. The bank upgraded FCX to Overweight from Equal Weight, citing underappreciated advantages from the Section 232 tariffs, which exclude upstream materials like ores but apply to downstream products where the company holds significant production capacity. Analysts emphasized that annual copper rod contracts, accounting for most of Freeport’s U.S. sales, could see pricing increases starting in 2026, potentially boosting margins as the U.S. remains a net importer of such products.

Despite an initial selloff following the July 30 tariff announcement, Freeport-McMoRan’s long-term positioning remains robust. Morgan Stanley noted that the company’s U.S. operations, including a 1 billion-pound copper rod production capacity out of 1.33 billion pounds in guided North American volumes, align with tariff-impacted segments. The firm also acknowledged a positive outlook for gold as a secondary tailwind. While the stock has faced short-term volatility—dropping nearly 9% on the tariff clarification—it has gained over 11% in the past six months, outperforming the S&P 500. Analysts argue the recent price reaction is “overdone,” with continued upside potential from sustained tariff benefits.

A backtest of a strategy purchasing the top 500 stocks by daily trading volume and holding for one day yielded a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This highlights the role of liquidity concentration in short-term performance, particularly in volatile markets. High-volume stocks, including those with strong liquidity like Freeport-McMoRan, demonstrated amplified price movements, underscoring the interplay between trading activity and market dynamics in driving returns.