Shares of MP Materials Corp. (NYSE: MP) took the entire market by surprise in the second week of July 2025, as the stock unexpectedly jumped by as much as 44.7% in that short period. While this could trigger most investors to look the other way, feeling that they have missed the boat and would likely land on the wrong side of a trade if they chase after the tock higher, the truth is that there are other factors still at play that can lead MP Materials stock into a higher level.
One of these factors is what is happening in the broader economic spectrum, especially when it comes to where trade tariff negotiations are headed within the United States' rare earth metals industry. When comparing the performance of the S&P 500 index against the Materials Select Sector SPDR Fund (NYSEARCA: XLB) to represent the basic materials sector, investors will quickly find out where the market preference is today.
