NuScale Power's stock is experiencing downward pressure as part of a broader market decline affecting the energy sector. The market is reacting to recent macroeconomic data that has heightened concerns about potential interest rate hikes, which could impact capital-intensive industries like nuclear energy. Additionally, geopolitical tensions have contributed to market volatility, leading investors to reassess their positions in energy stocks, including NuScale Power.
The energy sector is particularly sensitive to changes in interest rates and geopolitical developments, as these factors can influence project financing and operational costs. Analysts have noted that the current market environment is prompting a shift towards more defensive sectors, with investors seeking to mitigate risk amid uncertainty.
NuScale Power (SMR) shares are down 4.7% to $20.70 as of 7:55 am on Wednesday, compared to its previous close of $21.72 on January 7th.