What happened?
A number of stocks jumped in the afternoon session after Reuters reported that China has prolonged its export control relief on rare earth materials until January 10, 2027, maintaining supply access for overseas manufacturers while extending suspensions on additional tariffs and port fees.
Rare earth elements comprise a group of seventeen specialized metals vital for building high-power magnets, electric vehicle motors, wind turbines, and defense electronics. Because China processes the vast majority of the world's rare earth supplies, export controls could disrupt assembly lines across the United States, Japan, India, and Europe. Prolonging the policy relief through January 2027 allays immediate fears of severe supply chain bottlenecks for automotive and clean energy producers.
In addition to export access, the authorities extended pauses on supplemental tariffs and commercial port fees, reducing logistical overhead. Market participants viewed the move as an essential lifeline for global manufacturing networks, allowing industrial firms to secure necessary component shipments without near-term operational disruptions.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Heavy transportation equipment company Oshkosh (NYSE: OSK) jumped 5.6%. Is now the time to buy Oshkosh? Access our full analysis report here, it’s free.
- Aerospace company AAR (NYSE: AIR) jumped 7.4%. Is now the time to buy AAR? Access our full analysis report here, it’s free.
- Aerospace company Astronics (NASDAQ: ATRO) jumped 7.2%. Is now the time to buy Astronics? Access our full analysis report here, it’s free.
Zooming in on AAR (AIR)
AAR’s shares are quite volatile and have had 17 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 6.5% on the news that the company announced proposed offerings of $955 million of senior notes due 2031 and $960 million of senior notes due 2034 to help finance its acquisition of a controlling interest in MRO Holdings, Inc. The company stated that the offerings remain subject to market conditions. Net proceeds from the debt sales will be combined with proceeds from a private placement of common stock and borrowings under a revolving credit facility to fund the acquisition. In a regulatory filing, the company reported that it distributed a confidential preliminary offering memorandum for the unregistered offering under Rule 144A and Regulation S.
AAR is up 38.4% since the beginning of the year, but at $116.90 per share, it is still trading 23.9% below its 52-week high of $153.71 from August 2026. Investors who bought $1,000 worth of AAR’s shares 5 years ago would now be looking at an investment worth $3,003.
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