Markets React to Trump's Election: Impacts on Energy Sector

A recent report highlights the market fluctuations following Donald Trump's election. Stocks surged, despite real estate struggles, while investor interest in nuclear energy is growing, particularly for companies backed by big tech. The future landscape remains uncertain as policies evolve.

Date: 17-11-2024

AI Rating: 6

The report indicates broad market movements following Donald Trump's election, with stocks seeing an overall surge, suggesting a positive reaction from investors. However, concerns about real estate and multinational companies facing potential tariffs introduce uncertainties for these sectors.

Treasury yields rose due to apprehensions regarding increased deficits and the anticipated impact of tariffs, although yields stabilized afterward, indicating a tentative investor sentiment.

Specifically, the nuclear energy sector is highlighted as a focal point of interest, spurred by big tech endorsements of nuclear power. Companies like Nuscale Power (NYSE: SMR) and Oklo (NYSE: OKLO) have garnered attention due to their alignment with upcoming technological needs, particularly related to AI-driven data centers.

The report notes Trump's past support for nuclear policies, including loans for construction projects and promotion of small modular reactors (SMRs). His recent advocacy for rapid approvals of new reactors signals potential future incentives for the nuclear sector, which may translate to stock price increases for related companies.

However, the analysis reveals potential limitations on Trump's influence as the technology for SMRs is still under development, with projections for significant deployment remaining years away. The current supportive measures taken by the Biden administration also suggest that even a pro-nuclear stance from Trump may have a capped effect on potential growth, given the pre-existing favorable environment for nuclear development.

Despite potential long-term optimism for nuclear stocks due to tech company backing and supportive policies, investors are advised to remain patient as the actual implementation of policies and technology development unfolds.

Stocks: SMR OKLO