USA Rare Earth Inc. (USAR) saw its stock price plummet by 5.04% during intraday trading on Thursday, continuing a trend of volatility that has plagued rare earth stocks in recent weeks. The significant drop comes as investors grapple with a series of market-moving events affecting the rare earth sector.

According to recent reports, rare earth stocks have been on a rollercoaster ride over the past month. Threats of Chinese export controls, ongoing trade negotiations, government deals, capital raises, short seller reports, and corporate earnings have all contributed to a brutal selloff. USA Rare Earth, along with other players in the sector such as MP Materials and Ramaco Resources, has experienced substantial price swings, with the group seeing an average decline of 34% over the past month.

The persistent downward pressure on USA Rare Earth's stock price may be attributed to investor concerns about the volatile nature of the rare earth market and geopolitical tensions surrounding the industry. While the long-term outlook for domestic rare earth producers remains positive due to U.S. government efforts to break China's near-monopoly, short-term uncertainties continue to drive stock volatility. As the market awaits more clarity on trade policies and corporate performance, USA Rare Earth investors may need to brace for further fluctuations in the coming days.