In response to the passage of nuclear power legislation, the stock prices of uranium exploration, extraction, and processing companies have been rising sharply.
The Global X Uranium ETF (NYSE:URA) has skyrocketed by 10% over the past three trading sessions, as the U.S. government intends to increase investments in the industry in the upcoming years.
What happened: On June 1, the Senate Environment and Public Works (EPW) Committee enacted the bipartisan ADVANCE Act, a nuclear energy bill intended to position the United States as a global leader in nuclear technology and energy.
The legislation, introduced by Ranking Member Sen. Shelley Moore Capito (R-WV), Chairman Sen. Tom Carper (D-DE), Sen. Sheldon Whitehouse (D-RI), aims to encourage the development and deployment of novel nuclear technologies.
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Why it matters: The ADVANCE Act has the potential to promote market growth and performance in the nuclear energy sector, as it provides the Nuclear Regulatory Commission (NRC) with the tools and resources necessary to facilitate the safe and competitive development of nuclear technology in the United States.
It will reduce regulatory costs, incentivize next-generation reactors, and streamline the licensing procedure for nuclear facilities on brownfield sites.
Capito stated, “From both a national security and energy independence standpoint, the United States has everything to gain by becoming the world leader in nuclear energy, and today we took an important step toward achieving that goal.”
- Cameco Corp. (NYSE:CCJ) the largest company in the uranium industry with a 25% weight in the Global X Uranium ETF, rose 14% since Wednesday, May 31.
- Nextgen Energy Ltd. (NYSE:NXE) has gained 21% over the same time frame.
- Uranium Energy Corp. (NYSE:UEC) soared 22%.
- Energy Fuels Inc. (NYSE:UUUU) is up 11.5%.
- Denilson Mines Corp. (NYSE:DNN) surged 12%.
Chart To Watch: Uranium Stocks Rallied Following ADVANCE Act Approval
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