Tech demand shines a light on power stocks
Dow up ~0.6%, S&P 500 up ~0.3%; Nasdaq up ~0.2%
Utilities lead S&P 500 sectors gainers; Comm Svcs weakest group
Dollar, gold gain; bitcoin up ~2%; crude declines
U.S. 10-Year Treasury yield dips to ~4.01%
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
TECH DEMAND SHINES A LIGHT ON POWER STOCKS
The S&P 500 utilities index .SPLRCU is the biggest gainer among the benchmark's 11 major sectors on Wednesday, up 1.6%, with electricity companies leading gains as investors eyed strong demand from technology companies seeking new sources of power to fuel their power-hungry data centers.
Amazon.com AMZN.O said on Wednesday it had signed three agreements on developing the nuclear power technology called small modular reactors. Shares of Dominion Energy D.N, one of the companies tied with Amazon, are up 3.5% at $59.61 after the announcement.
On Monday, Alphabet's GOOGL.O Google said it had signed the world's first corporate agreement to buy power from multiple small modular reactors to meet electricity demand for AI. Its agreement with Kairos Power aims to bring that company's first reactor online by 2030, with more deployments through 2035.
Last month, Microsoft MSFT.O and Constellation Energy CEG.O signed a power deal to help resurrect a unit of the Three Mile Island plant in Pennsylvania, the site of the worst U.S. nuclear accident in 1979.
And in March, Amazon had purchased a nuclear-powered data center from Talen Energy TLN.O, up 6% on Wednesday.
The biggest gainer in the utilities index on Wednesday is power company Vistra Corp VST.N, up 4.7%, just ahead of Dominion. Constellation's stock is the third-biggest gainer in the index, up 3.3%.
Also on Wednesday, Oklo Inc OKLO.N, a nuclear startup backed by OpenAI CEO Sam Altman, is up about 38% in its third straight day of gains. Its CEO had gained some attention on Tuesday, saying in an interview on CNBC that "power demand numbers frankly are mind blowing."
Utilities are traditionally seen as defensive investments as they are known for high dividends and predictable revenue. But recently they have found a following among investors looking for new ways to bet on the growing demand for AI technologies.
"Utilities have been considered steady eddy dividend stocks. But as technology changes everything, it is perhaps changing our view of energy stocks," JJ Kinahan, CEO of IG North America and President of tastytrade told Reuters.
"The more we see new technologies like AI, the more demand there is for energy. With that, many tech companies are trying to get ahead of it by purchasing their own sources of energy."
(Sinéad Carew)
*****
FOR WEDNESDAY'S EARLIER LIVE MARKETS POSTS:
INVESTOR SENTIMENT FOR STOCKS IS OUTPACING BONDS - CLICK HERE
INVESTORS SHOULD SHIFT CORPORATE BOND EXPOSURES AFTER STRONG RALLY – JPM - CLICK HERE
SMID-CAPS POISED TO HAVE THEIR DAY? - CLICK HERE
FUND MANAGER OPTIMISM JUMPS BY MOST SINCE 2020 AS FED CUTS RATES - CLICK HERE
HUMP DAY DATA ROUNDUP: IMPORT PRICES COOL, MORTGAGE RATES HEAT UP - CLICK HERE
U.S. STOCKS INCH HIGHER EARLY; FINANCIALS GAIN - CLICK HERE
S&P 500 INDEX HURDLES STACKED UP AROUND 6K - CLICK HERE
BE CAUTIOUS ABOUT BRITISH SERVICES INFLATION DATA - BOFA - CLICK HERE
INVESTING IN BRITAIN PLC? IT'S "NOT STRAIGHTFORWARD" - CLICK HERE
CONFIDENCE AROUND FRENCH BANKS ON SHAKY GROUND - CLICK HERE
US DEBT IS A 'REST OF THE WORLD' PROBLEM ... FOR NOW - CLICK HERE
LUXURY AND TECH WEIGH ON STOXX - CLICK HERE
MIXED BAG IN EUROPE AS EARNINGS SOUR MOOD - CLICK HERE
CHIPS AND LUXURY LEAD THE WAY LOWER - CLICK HERE
Relaterade tillgångar
Senaste nytt
Ansvarsfriskrivning: XM Group-enheter tillhandahåller sin tjänst enbart för exekvering och tillgången till vår onlinehandelsplattform, som innebär att en person kan se och/eller använda tillgängligt innehåll på eller via webbplatsen, påverkar eller utökar inte detta, vilket inte heller varit avsikten. Denna tillgång och användning omfattas alltid av i) villkor, ii) riskvarningar och iii) fullständig ansvarsfriskrivning. Detta innehåll tillhandahålls därför uteslutande som allmän information. Var framför allt medveten om att innehållet på vår onlinehandelsplattform varken utgör en uppmaning eller ett erbjudande om att ingå några transaktioner på de finansiella marknaderna. Handel på alla finansiella marknader involverar en betydande risk för ditt kapital.
Allt material som publiceras på denna sida är enbart avsett för utbildnings- eller informationssyften och innehåller inte – och ska inte heller anses innehålla – rådgivning och rekommendationer om finansiella frågor, investeringsskatt eller handel, dokumentation av våra handelskurser eller ett erbjudande om, eller en uppmaning till, en transaktion i finansiella instrument eller oönskade finansiella erbjudanden som är riktade till dig.
Tredjepartsinnehåll, liksom innehåll framtaget av XM såsom synpunkter, nyheter, forskningsrön, analyser, kurser, andra uppgifter eller länkar till tredjepartssajter som återfinns på denna webbplats, tillhandahålls i befintligt skick, som allmän marknadskommentar, och utgör ingen investeringsrådgivning. I den mån som något innehåll tolkas som investeringsforskning måste det noteras och accepteras att innehållet varken har varit avsett som oberoende investeringsforskning eller har utarbetats i enlighet med de rättsliga kraven för att främja ett sådant syfte, och därför är att betrakta som marknadskommunikation enligt tillämpliga lagar och föreskrifter. Se till så att du har läst och förstått vårt meddelande om icke-oberoende investeringsforskning och riskvarning om ovannämnda information, som finns här.
