Uranium miner Energy Fuels (UUUU -2.42%) received a major boost to its stock on Friday from one of the most powerful market movers lately -- President Donald Trump.
On news that Trump signed a set of executive orders hastening the development of the nuclear energy industry, a clutch of sector stocks rose dramatically. Since uranium is the fuel of choice for nuclear power generation, Energy Fuels stock was swept up in the rally and closed Friday 20% higher. That was miles ahead of the S&P 500 index, which landed in the red with a 0.4% drop.
Quite the comeback for the industry
Demand for power in the U.S. is rising steeply, not least because of the resource-heavy requirements of artificial intelligence (AI). Addressing this need is a priority for the president's administration, as strongly evidenced by his declaring an energy emergency on the first day of his current term in office.
Image source: Getty Images.
On Friday the president signed four executive orders, which collectively ease regulations on the nuclear industry and support its development. More helpful for Energy Fuels directly, the orders also provide greater scope for uranium mining and enrichment activities.
Trump said of nuclear: "It's a hot industry. It's a brilliant industry."
"You have to do it right," he added.
Fuel for future rallies?
Energy Fuels is a clear and obvious pick-and-shovel play on Trump's zeal to get the nuclear industry up and running again. There's quite some distance between intent and execution, however, so we'll have to watch for early indications about how this new push for nuclear is going before better judging how beneficial it might be for the company.
