Trump’s Positive Trade Call with China: A Boost for Rare Earth and Mining Stocks?

President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:

“I just concluded a very good phone call with President Xi, of China, discussing some of the intricacies of our recently made, and agreed to, Trade Deal. The call lasted approximately one and a half hours, and resulted in a very positive conclusion for both Countries. There should no longer be any questions respecting the complexity of Rare Earth products. Our respective teams will be meeting shortly at a location to be determined. We will be represented by Secretary of the Treasury Scott Bessent, Secretary of Commerce Howard Lutnick, and United States Trade Representative, Ambassador Jamieson Greer. During the conversation, President Xi graciously invited the First Lady and me to visit China, and I reciprocated. As Presidents of two Great Nations, this is something that we both look forward to doing. The conversation was focused almost entirely on TRADE. Nothing was discussed concerning Russia/Ukraine, or Iran. We will inform the Media as to scheduling and location of the soon to be meeting. Thank you for your attention to this matter!”

How Will Trump’s Statement Affect the Stock Market?

This latest post has the potential to affect the stock market. That’s because Donald Trump’s positive remarks on the trade deal with China, particularly concerning Rare Earth products, could boost investor confidence in the SPDR S&P Metals & Mining ETF and MP Materials Corp, as these entities are directly linked to the mining and processing of such materials. The assurance of a stable trade relationship between the U.S. and China might alleviate concerns over supply chain disruptions, potentially benefiting companies like Lithium Americas Corp that rely on these materials. Overall, the market could see a positive reaction, with increased interest in stocks related to rare earth and mining sectors.

Here are some of the stocks that might be affected:
SPDR S&P Metals & Mining ETF ((XME)),
Mp Materials Corp ((MP)),
Lithium Americas Corp. ((LAC)).