Death Cross Hits MP Materials As Trump-Backed Rare Earth Bet Loses Momentum

A stock riding policy tailwinds isn't supposed to look like this. MP Materials Corp. (NYSE:MP) — one of the biggest beneficiaries of the Donald Trump administration‘s push to secure its rare earth supply chain — has just flashed a Death Cross, a signal that tends to show up when momentum fades and trends start rolling over. Chart created using Benzinga Pro • Check in on MP stock here. And the timing stands out. The company has been at the center of a broader U.S. industrial push, backed by a wave of investment momentum tied to domestic manufacturing. A $1.3 billion Texas facility — part of a wider surge in U.S. and foreign investments — was supposed to anchor its next leg of growth. Instead, the chart is starting to tell a different story. Chart Breakdown Signals Shift After a massive 112% run over the past year, the stock has quietly been losing altitude. It's now down nearly 19% over the past month, with the latest move pushing it into a clear technical breakdown. The death cross — where the short-term moving average slips below the long-term trend — confirms what price action has been hinting at. Momentum is fading, rallies are weaker, and sellers are starting to take control. Indicators aren't offering much comfort either. MACD (moving average convergence/divergence) indicator remains in negative territory, RSI (relative strength index) is hovering below neutral, and the stock is struggling to reclaim key moving averages. This isn't panic selling — it's a steady unwind. Policy Tailwinds Vs. Market Reality That's where the contrast sharpens. MP Materials isn't lacking a narrative. The company sits at the heart of America's rare earth strategy, benefiting from a broader push to reduce reliance on China and build domestic supply chains. The scale of investment flowing into the U.S. — over $10 trillion across sectors — only reinforces that backdrop. But markets don't move on narrative alone. Even with strong policy support and long-term demand visibility, the stock appears to be repricing after a steep run-up. At current levels, the question isn't whether the story is intact — it's whether expectations simply ran ahead of execution. A death cross doesn't seal the trend, but it often reflects a market that's reassessing. Right now, MP Materials sits in that exact spot — where big-picture tailwinds remain strong, but the chart suggests investors are no longer willing to chase them. Photo: Shutterstock