Why Alcoa Stock Plunged Today
Shares of Alcoa (NYSE: AA) tanked Thursday, closing the day down 11% and marking its steepest fall so far this week. Investors have been excited about the aluminum giant's prospects so far this year, but the optimism appears to be fading.
Alcoa is a pure-play aluminum stock, so the meteoric rise in aluminum prices this year unsurprisingly spurred heavy investor interest in the stock. It's never a one-way ride for Alcoa shares, though, given that it's a commodity stock that typically moves with fluctuations in commodity prices.
That pretty much explains why Alcoa shares fell today. Prices of base metals are headed lower on the back of weak economic data from China, the world's largest metals consumer.
Source Fool.com
