BUZZ-Nuclear stocks rally after Fed's Powell hints at lower interest rates
Shares of U.S. nuclear-linked stocks surged following Federal Reserve Chair Jerome Powell's hints at potential interest rate cuts. Lower rates would reduce financing costs for long-term projects like nuclear power plants. Notable gains included Cameco (up 4%), Centrus Energy (up 4.1%), and Uranium Energy (up 7.5%). Companies developing small nuclear reactors also saw increases, with NuScale Power rising 5.3%. Nuclear utilities like GE Vernova and Vistra also experienced modest gains.
Shares of U.S. nuclear-linked stocks rally, tracking Wall Street gains on interest-rate cut hopes (.N)
U.S. Federal Reserve Chair Jerome Powell pointed to a possible rate cut at the central bank’s next policy meeting in his remarks at the Jackson Hole Symposium
Lower interest rates decrease the cost of capital for expensive, long-term projects like nuclear power plants and makes it cheaper to finance new projects and expansions
Uranium producers rise: Cameco (CCO.TO) up 4%, Centrus Energy (LEU.A) up 4.1%, enCore Energy (EU.O) gains 6.2%, Uranium Energy (UEC.A) up 7.5%, and Energy Fuels (UUUU.A) jumps over 10%
Shares of companies engaged in developing small nuclear reactors also gain: NuScale Power (SMR.N) up 5.3%, Nano Nuclear Energy (NNE.O) and Sam Altman-backed Oklo (OKLO.N) both up 6%
Nuclear utilities GE Vernova (GEV.N) up 2.8%, Vistra (VST.N) up 2.6%, Constellation Energy (CEG.O) up 1.2% and Talen Energy (TLN.O) rises 1.4%
