Nuclear Energy: Tech’s new power play? 04/06/2025

HOT stories for today

US market wrap:

• Wall Street wrapped up a strong session on Tuesday, marking consecutive gains. The Dow Jones Industrial Average, consisting of 30 stocks, climbed over 200 points, or 0.5%, notching its fourth straight day in the green. The S&P 500 and Nasdaq Composite performed even better, rising 0.6% and 0.8%, respectively, supported by a surge in technology shares.
• U.S. employment data exceeded expectations, corporate earnings were upbeat, and Federal Reserve officials reiterated their recent ‘wait and see’ stance. Nvidia jumped nearly 3%, overtaking Microsoft to reclaim its position as the world’s most valuable publicly traded company. The latest market rebound has strengthened investor belief that equities are recovering from tariff concerns—especially after a string of policy reversals from President Donald Trump led traders to view the administration’s tariff threats as strategic bargaining tools rather than firm policy.

Nuclear Energy: Tech’s new power play?
 

• Meta Platforms has signed a 20-year agreement with Constellation Energy to supply nuclear power from the Clinton Clean Energy Center in Illinois. The move reflects a broader trend among major technology firms—including Amazon, Microsoft, and Alphabet—seeking long-term electricity solutions to meet the soaring energy demands of artificial intelligence infrastructure. Following the announcement, Constellation’s stock rose by 4%, while Meta saw a slight decline.
• As generative AI development ramps up, nuclear energy is drawing renewed attention for its reliability and zero-carbon output—traits that align with the needs of data centers operating around the clock. Several exchange-traded funds (ETFs) focused on the sector have seen growing interest. Constellation Energy is currently the largest holding in ETFs such as the VanEck Uranium & Nuclear ETF (NLR), Range Nuclear Renaissance ETF (NUKZ), and Themes Uranium & Nuclear ETF (URAN), which invest in companies involved in uranium mining, nuclear reactor construction, and clean energy generation.

Stock’s on the move:

• Hewlett Packard Enterprise (HPE) — Shares climbed 3% after the IT solutions provider surpassed Wall Street estimates on both revenue and earnings. For its fiscal second quarter, the company reported adjusted earnings of $0.38 per share on revenue of $7.63 billion. Analysts surveyed by LSEG had forecast $0.32 per share on $7.45 billion in revenue.
• Wells Fargo & Co. (WFC) — The stock advanced 2% after the bank announced that the Federal Reserve has lifted its asset cap restrictions, which had been in place since 2018.
• HealthEquity (HQY) — Shares gained 4% after the health savings account administrator boosted its full-year outlook. The company now anticipates adjusted earnings between $3.61 and $3.78 per share, with revenue projected between $1.285 billion and $1.305 billion. FactSet analysts had expected $3.62 per share in earnings and $1.30 billion in revenue.
• Guidewire Software (GWRE) — The stock surged over 8% after the insurance-focused software firm posted third-quarter results that topped analyst projections.

                                    Watchlist: HPE, WFC, CEG, GWRE, CRWD, NVDA, HQY, DLTR



Today’s action

• Asia-Pacific markets moved higher on Wednesday, tracking Wall Street's tech-driven gains led by chip giant Nvidia (NVDA). South Korea led regional advances after opposition leader Lee Jae-myung secured victory in the presidential election. The Kospi surged 2.43%, reaching its highest level since August 2023, while the Kosdaq rose 1.39%. Japan’s Nikkei 225 climbed 0.82%, and Hong Kong’s Hang Seng Index added 0.72%.
• In the U.S., stock futures were relatively flat early Wednesday after the S&P 500 logged a second consecutive day of gains. Futures for the Dow Jones Industrial Average slipped 41 points (0.1%), while S&P 500 and Nasdaq 100 futures dipped 0.1% and 0.14%, respectively. Investors are awaiting key labor market data this week. The ADP private payrolls report is set for release Wednesday, followed by weekly jobless claims Thursday and the closely watched May jobs report on Friday. The Federal Reserve’s Beige Book is also scheduled for publication Wednesday afternoon. On the corporate front, Dollar Tree (DLTR) will post its quarterly earnings Wednesday before markets open.

Bitcoin

• Bitcoin (BTC) climbed back toward $106,000 following the June 3 Wall Street open, as traders looked for signs of a sustained recovery. The cryptocurrency had briefly dipped below its late-2024 highs but found firm support above $100,000, easing fears of a deeper pullback. At last check, BTC traded around $105,425, with analysts pointing to strong support extending down to $97,000—boosting the likelihood of price stabilization.
• Market observers noted ongoing profit-taking, though current activity lacks the intensity seen during typical cycle peaks, suggesting a potentially different trend structure. Popular trader Daan Crypto Trades noted that key liquidity clusters remain above $110,000 and below $103,000, indicating the possibility of price swings aimed at triggering stop orders on both sides of the market.
  Watchlist: Bitcoin: 100 000-112 000, Ethereum:1500-2800, Solana: 80-183

Forex

• The Japanese Yen (JPY) weakened for a second consecutive session on Wednesday, hitting a fresh weekly low against the U.S. Dollar (USD) during Asian trading. The decline comes despite a stronger-than-expected upward revision in Japan’s Services PMI, which has raised market expectations for a future Bank of Japan (BoJ) rate hike. However, dovish comments from BoJ Governor Kazuo Ueda have tempered those expectations, adding pressure to the yen. Broader safe-haven demand and diverging Fed-BoJ policy outlooks may still offer some support to the JPY.
• Meanwhile, the EUR/USD pair remained stable around 1.1380 after modest losses in the previous session. The euro is holding its ground as the USD softens, weighed by uncertainty over U.S. economic growth and ongoing tariff tensions. While U.S. JOLTS job openings surprised to the upside at 7.39 million for April, the Eurozone’s Harmonized Index of Consumer Prices (HICP) dropped 1.9% year-over-year in May, slipping below the European Central Bank’s 2% inflation target—adding to speculation around ECB policy direction.
  Watchlist: EUR/USD: 1.0700-1.1600, USD/JPY: 140-151

Basic Materials

• Gold (XAU/USD) struggled to maintain modest gains from the Asian session, trading just above the previous day’s low after reaching the $3,372–$3,373 range. A firmer U.S. Dollar and upbeat market sentiment added mild pressure, though downside appears limited. Expectations of future Fed rate cuts and ongoing U.S. fiscal concerns may cap the dollar’s recovery, offering support to gold. Additionally, geopolitical tensions and trade-related uncertainty continue to provide a bullish backdrop for the precious metal.
• Meanwhile, West Texas Intermediate (WTI) crude rose to around $62.80 in early Asian trading, reaching a two-week high. The climb is driven by elevated geopolitical risks and supply concerns, which offset a slightly stronger dollar. WTI’s rally also follows OPEC+’s decision to increase output by 411,000 barrels per day in July. Traders are now awaiting the EIA crude inventory report due later Wednesday for further direction.
  Watchlist: GOLD 2600-3500, US Oil: 55.60-70.00
  
   

Key Economic Events Today:

EST time
08:15 am: USD ADP Non-Farm Employment Change
08:30 am: USD FOMC Member Bostic Speaks
10:00 am: USD ISM Services PMI
10:30 am: USd Crude Oil Inventories
02:00 pm: USD Beige Book


Earnings
BMO (Before the US Market opens)
DLTR          Dollar Tree Inc.
THO            Thor Industries
AMC (After the US Market closes): MDB, FIVE, PVH

 

The TEFS Analyst team wishes you a successful day!