MP Materials Soars 13.88% on U.S. Rare Earth Funding Plans

MP Materials(MP)涨13.88%。，The share price rose to its highest level since March 2023 today, with an intraday gain of 16.85%.

The strategy of buying MP shares after they reached a recent high and holding for 1 week showed poor performance over the past 5 years. The annualized return was -12.2%, significantly underperforming the market. This indicates that relying on recent highs as a buying trigger and holding for a short duration is not a profitable strategy for MP. The detailed results are as follows:

MP Materials' stock price surge can be attributed to the U.S. government's plans to utilize Cold War-era powers to prioritize and fund rare earth projects. The Trump administration is considering invoking the Defense Production Act to support domestic rare earth mining and processing, aiming to reduce U.S. reliance on China. This initiative involves unlocking financing and loans for projects deemed essential to national security, with MP Materials, being the sole domestic producer, positioned as a key beneficiary. This has led to a significant surge in the company's stock price, reflecting investor optimism about the potential benefits from increased government backing.