USA Rare Earth (USAR) Drops Hard on Lack of US Govt Deal Update

We recently published 10 Stocks Crash Harder than Wall Street. USA Rare Earth Inc. (NASDAQ:USAR) is one of the worst performers on Wednesday.

USA Rare Earth extended losses for a second day on Wednesday, shedding 10.29 percent to close at $33.68 apiece, as investors unloaded portfolios amid the lack of developments in a potential partnership with the US government.

Earlier this month, USA Rare Earth Inc. (NASDAQ:USAR) announced that it was in talks with the US government and that it was keeping it informed about its plans.

The said negotiations followed the Trump administration’s acquisition of significant stakes in other listed mining companies, namely MP Materials and Lithium Americas, in line with plans to prop up domestic supply and reduce reliance on imports.

Additionally, USA Rare Earth Inc. (NASDAQ:USAR) dropped after recent trade tensions between the US and China officially eased. Its share price has been benefiting from the recent trade spat on investor speculation that any tariff imposition anew would push customers to look elsewhere for supply.

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READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.