Alcoa (AA) is down about 3% in Monday trading as the aluminum-driven rally that lifted the stock in late March and early April cools. Traders are trimming exposure to aluminum producers as the risk premium from Middle East supply disruptions fades and broader macro headwinds—particularly a stronger U.S. dollar and recession concerns—pressure near-term base-metals sentiment.

AA has been trading like a leveraged proxy for aluminum pricing after a sharp surge in the LME benchmark late last month on supply-disruption fears. As prices consolidate after that spike, the market is taking profits in high-beta aluminum names, especially those that ran hard on the supply-shock narrative.

Near-term direction for AA is likely to hinge on whether aluminum can hold elevated levels versus a deeper pullback if growth worries intensify. The next major company catalyst is Alcoa’s upcoming earnings release and update on realized pricing, shipments, and the impact of trade and tariff dynamics.