What's Affecting Markets Today
Uranium stocks have seen a significant surge today, driven by Amazon’s bold move into the nuclear energy sector. The tech giant announced a partnership with Dominion Energy to explore the development of small modular nuclear reactors (SMRs) to power its data centers. This $500 million investment follows similar commitments by other tech giants like Google and Microsoft, signaling a growing trend among major companies to embrace nuclear energy as a sustainable power source for their energy-hungry operations. The news led to a rally across uranium stocks, with companies such as Paladin Energy, Boss Energy, and Deep Yellow experiencing sharp gains.
Amazon’s decision to invest in nuclear energy has fueled investor optimism in the sector, triggering a wave of short covering in uranium equities, which are among the most shorted on the market. As tech companies increasingly turn to SMRs to meet their net-zero goals, the demand for uranium is expected to rise, providing a long-term boost to the sector. This development underscores the potential of nuclear energy to play a critical role in the future of clean energy, with tech giants leading the way in driving innovation and investment.
ASX Stocks
ASX 200 - 8,334.8 (+0.6%)
Key Highlights:
The ASX rally cooled today after strong employment data reduced the likelihood of an early rate cut by the Reserve Bank of Australia (RBA). The S&P/ASX 200 Index was up 73 points, or 0.7%, at 8363.5 by midday, having earlier climbed as much as 1.2% to a new intraday high. The Australian economy added 64,100 jobs in September, more than double the forecast, with the unemployment rate steady at 4.1%. This robust jobs report led traders to dial back expectations of a rate cut by December, with money markets now showing less than a one-in-three chance of such a move.
The upbeat data led to some profit-taking, particularly in rate-sensitive sectors like real estate, while the banking sector showed gains, with ANZ, Westpac, and NAB all up over 1%. AMP shares surged 12.9% after the company reported $1.1 billion returned to investors through dividends and buybacks. On the downside, WiseTech fell 4%, dragging on the technology sector, while Perpetual shares dipped 1% after a shareholder revolt against its remuneration report.
Leaders
AMP – AMP Ltd (+15.87%)
OBM – Ora Banda Mining Ltd (+14.18%)
CTT – Cettire Ltd (+13.45%)
SBM – St Barbara Ltd (+12.82%)
SGR – The Star Entertainment Group Ltd (+11.77%)
Laggards
OFX – OFX Group Ltd (-32.68%)
CVN – Carnarvon Energy Ltd (-5.88%)
DUG – DUG Technology Ltd (-5.51%)
SYR – Syrah Resources Ltd (-5.46%)
ZIM – Zimplats Holdings Ltd (-5.35%)
