USA Rare Earth and psychedelic stocks surge on $2.8B acquisition and Trump executive order

USA Rare Earth shares surged after announcing a major acquisition, while psychedelic-linked stocks like Compass Pathways skyrocketed following a presidential executive order, marking significant moves in yesterday's market close.

USA Rare Earth (USAR) rose sharply after agreeing to acquire Brazil's Serra Verde Group in a $2.8 billion cash-and-stock deal, one of the largest transactions in the rare-earths industry. According to Bloomberg's Stock Movers podcast, this move positions the company to expand its resources amid growing global demand for critical minerals used in electronics, electric vehicles, and defense technologies. Rare earths are essential for high-tech manufacturing, and such consolidations could reshape supply chains dominated by a few countries, affecting industries from smartphones to renewable energy.

In a separate but related surge, shares of Compass Pathways (CMPS) and other psychedelic-linked companies jumped dramatically after President Donald Trump signed an executive order over the weekend to speed up research and access to these therapies. Compass Pathways spiked as much as 53%, AtaiBeckley climbed 37%, GH Research PLC gained 34%, and Definium Therapeutics rallied 16%, as reported by Bloomberg. The AdvisorShares Psychedelics ETF (PSIL) also rose up to 20%, hitting its highest intraday level since July 2023. This policy shift signals potential federal support for psychedelics in treating mental health conditions like depression and PTSD, which could accelerate clinical trials and FDA approvals long stalled by regulatory hurdles.

These developments highlight investor enthusiasm for breakthroughs in resource security and innovative medicine. Rare earth deals address vulnerabilities in U.S. supply chains, especially with tensions over China's market dominance, while the psychedelics rally reflects optimism about emerging treatments backed by growing clinical evidence. Investors in these sectors now watch for deal closures and policy implementations that could drive further gains.

Meanwhile, AST SpaceMobile (AST) shares dropped as much as 14% after Blue Origin's New Glenn rocket failed to place one of the company's satellites in its intended orbit. As detailed in the Bloomberg podcast, this setback for the Texas-based satellite firm underscores risks in the competitive space industry, where reliable launches are critical for broadband connectivity goals. Affected shareholders face short-term losses, but the company may pivot to alternative launch providers.

Broader market context from Bloomberg's coverage shows exchange stocks rising on SEC approvals easing day-trading rules and banks like Morgan Stanley and Bank of America posting record trading revenues amid volatility. Tech names like Amazon gained over 3% in after-hours on Anthropic's $100 billion cloud commitment, tying into AI infrastructure booms seen in stocks like Nebius and Broadcom. These interconnected moves illustrate how policy, deals, and earnings shape daily trading.

What happens next remains key: USA Rare Earth's acquisition faces regulatory scrutiny in multiple countries, potentially delaying benefits. Psychedelic firms await details on the executive order's rollout, including funding for trials, while AST SpaceMobile must secure new launches to regain momentum. For investors, these stories emphasize opportunities in underrepresented sectors like rare earths and psychedelics, balanced against execution risks in space tech.