US equities sink, technical support levels eyed for bounce
US stock indices fell sharply, breaking key moving averages. Technical support levels could offer a lifeline if buyers step in.
Ford and JPMorgan each plan up to $1B for Michigan suppliers under LIFT. Rare earth stocks have slid as much as 29% in a month.
Ford and JPMorganChase are each planning to commit up to $1 billion to Michigan suppliers. Rare earth stocks, among the most direct listed plays on US manufacturing, have dropped as much as 29% in a month.
On Sept. 29, Ford, JPMorganChase, and the State of Michigan unveiled the Michigan Launchpad for Industrial Innovation and Transformation (LIFT). The $1 billion commitments are ten-year goals, working out to roughly $100 million per year from each backer.
JPMorganChase reported $5 trillion in assets as of June 30, which makes $1 billion in loans about 0.02% of that total. That is not a major outlay, but it signals where the bank sees opportunity.
Ford's contributions would be spread over a decade and depend on its usual supplier qualification and approval steps. The announcement also does not quantify any earnings impact for either company.
Critical minerals are among the first supply challenges the program addresses, with Ford CEO Jim Farley specifically naming magnets and rare earths. Other focus areas include robotics, semiconductors, and battery storage, though no listed suppliers are named in the announcement.
USA Rare Earth (USAR), a magnet maker whose plants are still under construction, fell 29% in the month leading up to Oct. 8. Over the same stretch, the VanEck Rare Earth and Strategic Metals ETF (REMX) declined 21%.
MP Materials (MP), which operates the only large-scale US rare earth mine, closed at $46.14 on Oct. 9 — less than half its October 2025 peak.
24/7 Wall St. noted that the decline has hurt builders the most, as they spend money before generating revenue. An earlier phase of the selloff was tied to hopes of a US-China thaw ahead of the Trump-Xi summit, according to 24/7 Wall St.
LIFT aims to close that gap, with the announcement citing uncertain demand and late financing as reasons suppliers have stalled. However, the program targets Michigan expansions, while MP Materials builds in Texas and USA Rare Earth in Oklahoma and South Carolina.
JPMorganChase CEO Jamie Dimon said $5 billion has already gone directly into security-focused firms, against a planned $10 billion. Meanwhile, money managers remain divided on whether the S&P 500's record rally can broaden beyond big tech.
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