U.S.-Based Rare Earth Stock Sits Out Trade Deal Rally

MP had enjoyed tailwinds from the trade war with China

Shares of MP Materials Corp (NYSE:MP), the U.S.’ leading rare-earths producer, are down 7% to trade at $33.45 at last check after the U.S.-China trade deal. China accounts for a large portion of the globe’s rare earth mining, and more importantly, 90% of rare earth processing capacity globally, which is why MP Materials stock enjoyed tailwinds from tariffs against the country. 

On the charts, the shares are pulling back from a June 18, two-year high of $39.10. Today’s drop has the equity falling below the 10-day moving average, which supported it during its recent rally, though it still sports a roughly 115% year-to-date lead. MP seemed due for a short-term dip, too, per its 14-day relative strength index of 75.6 that sits in “overbought” territory. 

Put traders are chiming in on today’s price action. So far, 8,102 puts have been exchanged, which is triple the put volume typically seen at this point. The two most popular contracts are still the January 2026 55- and 42-strike calls, but the next six most active are puts, starting with the weekly 6/26 34.50-strike put.  

Interestingly enough, short interest has been building despite the recent outperformance, and now represents 23% of the stock’s available float. It would take shorts over three days to cover their bets, at MP’s average pace of trading.