USA Rare Earth (USAR) Rockets 14.6% as Traders Bet on Critical Minerals Push

USA Rare Earth Inc. (NASDAQ:USAR) is one of the 10 Stocks That Would Have Boosted Your Portfolios by Double Digits.

USA Rare Earth soared by 14.62 percent on Wednesday to end at $16.78 apiece, as investors poured funds back into stocks tied to industries that the US government prioritized for strategic expansion.

The stock mimicked the wider market optimism, thanks to the two-week ceasefire between the US and Iran that allayed fears for worst-case scenarios for the global economy and sparked optimism for lower crude oil prices amid the reopening of the Strait of Hormuz—a critical waterway where 20 percent of global crude oil shipments pass through.

USA Rare Earth’s magnet facility in Stillwater, Oklahoma. Photo from the USA Rare Earth website

It can be recalled that the Strait was ordered shut under Iranian control since the war began, sending prices of global crude oil soaring as shipping firms looked for alternative pathways to transport oil.

Ceasefire aside, USA Rare Earth Inc. (NASDAQ:USAR) was among the favored stocks during the day, supported by strong confidence amid a flurry of positive developments recently, including the official commissioning of a large magnet facility, as well as the US government’s financial backing to help ramp up its expansion.

Late last month, USA Rare Earth Inc. (NASDAQ:USAR) officially kicked off the commercial operations of the first phase of its magnet facility in Stillwater, Oklahoma, allowing for the successful fulfillment of orders for sintered neodymium-iron-boron (NdFeB) permanent magnets.

Earlier this year, it secured a $1.6 billion backing from the US government, including $277 million in proposed federal funding and $1.3 billion in senior secured loan.

READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

Disclosure: None. Follow Insider Monkey on Google News.