Despite worries about whether there would be much of an immediate impact, shares of companies involved in nuclear power surged Friday thanks to President Donald Trump’s announcement of four executive actions intended to bolster the industry.
According to White House adviser Will Scharf, one order tries to overhaul the Nuclear Regulatory Commission, while another seeks to expedite the adoption of specialized nuclear reactors at defense installations. According to Scharf, a third order aims to update nuclear reactor testing laws, while a fourth order aims to revitalize the nuclear industry.
It’s “very hard to see how the U.S. will shift to a more domestically focused nuclear-fuel supply chain anytime in the near future,” according to Jonathan Hinze, president of UxC, a company that analyzes the nuclear-fuel industry, who spoke to MarketWatch about the country’s present high reliance on imports.
The primary effects of these [executive orders] that I can see are the simplification of some rules that would facilitate businesses’ pursuit of mine or fuel-cycle projects. Hinze stated, “But since no new government spending is being announced, a lot will depend on how the DOE, under Trump, manages the existing programs that fund new fuel-cycle projects.”
Tortoise Capital’s senior portfolio manager, Rob Thummel, stated that American firms such as Vistra Corp. and Constellation Energy Corp. are “well-positioned to benefit from a nuclear revival.”
Recently, Vistra’s stock (VST) was up 2% and Constellation’s (CEG) shares were up 2%. URA, an exchange-traded fund for Global X Uranium, was up 12%.
See also: Nuclear ETF soars ahead of Trump’s executive actions
