Here's Why USA Rare Earth Shares Popped Higher Today

Shares in USA Rare Earth (NASDAQ: USAR) rose by almost 7% as of 11 a.m. today. The rebound in the stock price, and that of its peer MP Materials (NYSE: MP), comes after a sharp sell-off tied to President Trump's visit to China. According to the White House, China has agreed to address shortages of key rare-earth minerals. That tends to be bearish for rare-earth stocks, as it implies an improving relationship that will lead to lower global rare-earth prices a nd undermine the strategic necessity of the U.S. securing its own domestic supply chain of rare-earth minerals, metals, and magnets.As such, the sector declined heavily over the last week, only to start bouncing back today. The reason? The reality is that it's still critically important for the U.S. strategically to secure its own supply. While the headlines may suggest a thawing in the relationship, the reality is that China is the dominant player in the rare-earth market and can exercise its leverage at any time. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool