Mon Jan 26 03:30:00 UTC 2026: # Rare Earths Stocks Surge Amid Tariff Fears and Government Investment

The Story:

As futures markets reacted negatively to a renewed tariff threat from the Trump administration and growing shutdown concerns on January 22, 2026, certain rare earth stocks bucked the trend, showing significant gains. USA Rare Earth (USAR), in particular, demonstrated exceptional market leadership, with its Relative Strength (RS) Rating jumping into the 90-plus percentile. The surge in these stocks occurred amidst growing anticipation of a substantial government investment in the rare earths sector.

Key Points:

  • On January 22, 2026, futures markets were down due to tariff threats and shutdown risks.
  • USA Rare Earth (USAR) saw its Relative Strength (RS) Rating improve to 91, up from 86 the previous day.
  • Freeport-McMoRan’s IBD SmartSelect Composite Rating jumped to 98 from 94 the previous day on January 22, 2026.
  • The Investor’s Business Daily emphasized that its information is for educational purposes only and not investment advice.

Critical Analysis:

The timing of the rise in rare earth stock ratings, coinciding with the tariff threats and shutdown risk, suggests that investors may be seeking safe havens and alternative investments. The simultaneous news regarding potential government investment in the sector, specifically the Trump administration’s reported $1.6 billion stake in USA Rare Earth, acted as a catalyst, driving up the stock’s attractiveness and performance. This highlights the growing strategic importance of rare earth minerals and the potential for significant returns in this sector driven by government support.

Key Takeaways:

  • Government investment can significantly impact the performance of companies in strategic sectors like rare earths.
  • Tariff threats and economic uncertainty can drive investment into specific sectors perceived as safe havens or having growth potential.
  • USA Rare Earth is emerging as a key player in the rare earth minerals market, bolstered by potential government backing.
  • Investor’s Business Daily emphasized that its information is for educational purposes only and not investment advice.

Impact Analysis:

The move by the Trump administration to invest heavily in USA Rare Earth signals a longer-term strategy to secure domestic supply chains for critical minerals. This move could have substantial implications, including:

  • Reduced reliance on foreign sources for rare earth elements, bolstering national security and economic independence.
  • Increased domestic production and job creation in the mining and processing of rare earth minerals.
  • Potential shifts in the global rare earth minerals market, impacting trade relationships and the competitive landscape.
  • Future economic growth due to governmental investment and growth in the private sector.

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