USA Rare Earth, MP Materials, and peers surge as investors rotate into hard assets amid rising long-term bond yields.
USA Rare Earth shares jumped 8% to $18.40 in early trading Friday, while MP Materials climbed 5% to $58 and Critical Metals surged 10% to $6.37. The moves reflect a broader rotation into hard assets as 30-year Treasury yields hit 2007 highs, driving capital toward scarce commodities.
The VanEck Rare Earth and Strategic Metals ETF rose 6% to $80.28, outpacing the S&P 500’s 0.3% gain and the NASDAQ 100’s 0.1% increase. Gold also advanced 1.63% to $4,646.10 per ounce, while the U.S. dollar index dipped 0.2%. No company-specific news triggered the rally, signaling a sector-wide shift.
The bond selloff, which pushed yields to multi-year highs, appears to be accelerating the rotation into commodities and critical minerals. Liquidity constraints in smaller stocks may be amplifying the moves.