Nuclear energy resurgence

What happened: The U.S. government allocated $17.5 billion in loans to boost nuclear energy, aiming to complete 10 new large reactors by 2030 using Westinghouse technology. Cameco, GE Vernova, and Vistra are among the stocks poised to benefit. Globally, nuclear capacity is set to surge 44% by 2036, led by China and India. Meanwhile, Constellation's Three Mile Island restart received a boost from the FERC, and Sweden advanced its nuclear revival with two major filings and a $3.7 billion state commitment.

Market impact: The nuclear energy sector is experiencing a resurgence, driven by government support, increasing demand for reliable, carbon-free electricity, and advancements in reactor technology. Utility stocks, nuclear fuel suppliers, and reactor developers stand to benefit. Companies like Microsoft and Meta are signing long-term agreements with nuclear operators, creating a new demand source. Nuclear energy stocks have seen volatility but remain attractive due to long-term tailwinds.

What to watch next: In the coming months, investors should monitor the progress of Constellation's Three Mile Island restart and Sweden's nuclear projects. Additionally, watch for earnings from nuclear energy companies and any updates on global nuclear capacity expansion plans, particularly from China and India. Lastly, keep an eye on the performance of nuclear energy stocks in the second half of 2026 and their reaction to any geopolitical or economic developments that could impact the sector.