Shares of Cleveland-Cliffs (NYSE: CLF) surged nearly 10% this week, rebounding from a previous drop after an analyst downgrade. Steel stocks are on the rise due to increased demand and supply factors, boosting valuations. Earnings season will reveal if the trend is industry-wide. Nucor, a domestic peer, also saw a 7% jump this year.

Analyst Philip Gibbs downgraded Cleveland-Cliffs due to valuation concerns, noting major catalysts are behind the company. Steel stocks are benefiting from demand in infrastructure, construction, and automotive sectors. Economic recovery, potential interest rate cuts, and government infrastructure investment are driving optimism and increasing valuations for steel companies.

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Read more at Yahoo Finance: Why Did Cleveland-Cliffs Stock Jump This Week?