Group 1 - The Federal Reserve's expectation for a rate cut in January has dropped significantly from a strong possibility to only 5% after the release of the December non-farm payroll report, which showed only 50,000 new jobs added, but a better-than-expected unemployment rate of 4.4% [1][3] - The market consensus has shifted towards the Federal Reserve likely remaining steady in its January meeting, with the first rate cut now pushed back to mid-2026 [3] - Despite the cooling of rate cut expectations, the U.S. stock market remains resilient, particularly in the nuclear power sector, as major tech companies like Meta are signing long-term agreements for nuclear energy supply, indicating a strategic focus on long-term growth rather than short-term interest rate fluctuations [3] Group 2 - Investors are advised not to overreact to short-term impacts of single data points, as the Federal Reserve considers a range of data trends for its decisions [4] - The focus of the market is expected to shift from "when will rates be cut" to "how resilient is the economy" and "can corporate earnings be sustained" [4] - Maintaining composure during market volatility is crucial, emphasizing the importance of the long-term value of held assets rather than being swayed by short-term market sentiment [4]

Core Viewpoint - A significant upgrade from Bank of America and increased options activity are positively influencing the growth narrative of nuclear power, particularly for NuScale Power, a developer of small modular reactor technology [1][3]. Company Summary - NuScale Power's stock (SMR) rose by 4.27% to close at $20.52, marking a 104% increase since its IPO in 2022 [2]. - The company has a market capitalization of $5.6 billion, with a trading volume of 51 million shares, significantly above its three-month average of 26 million shares [2]. - The gross margin for NuScale Power stands at 64.95% [2]. Industry Summary - The S&P 500 and Nasdaq Composite indices saw gains of 0.64% and 0.81%, respectively, indicating a positive market environment [4]. - Other companies in the nuclear power sector, such as GE Aerospace and BWX Technologies, also experienced stock price increases, reflecting renewed interest in small modular reactor growth prospects [5]. - The demand for nuclear power is being driven by the increasing energy needs of data centers, particularly for AI applications, positioning NuScale's SMR technology as a potential solution [6]. Investment Implications - Bank of America analysts have upgraded NuScale Power with a price target of $28 per share, suggesting a potential upside of 36.5% from the current price [6]. - High options activity has contributed to the stock's increased trading volume, although no fundamental news from the company was released [7].

Core Viewpoint - NuScale Power was upgraded to Neutral from Underperform by BofA Securities, with a revised price target of $28, down from $34, reflecting a valuation adjustment after a significant share price decline [1] Group 1: Upgrade and Price Target - The upgrade to Neutral does not indicate a change in the long-term view on small modular reactors, but acknowledges the 60% decline in NuScale's share price from its peak [1] - Shares of NuScale rose more than 6% intraday following the upgrade [1] Group 2: Near-term Risks - BofA identified several factors affecting near-term risk-reward, including funding and timing mismatches in the ENTRA1 Partnership Milestones Agreement, high near-term cash requirements, and expected incremental dilution [2] - The firm maintains a long-term deployment outlook of approximately 18 gigawatts of cumulative capacity through 2040, but near-term cash flow issues and equity overhang continue to balance the risk-reward profile [3]

Oklo (OKLO) shares soared as much as 20% on Jan. 9 after hyperscaler Meta Platforms (META) agreed to support development of a 1.2-gigawatt nuclear power campus in Pike County, Ohio. This advanced nuclear campus will power META’s data centers, including its artificial intelligence (AI) supercluster broadly known as the “Prometheus” in New Albany, Ohio. More News from Barchart Despite today’s rally, however, OKLO stock remains down nearly 40% versus its 52-week high. www.barchart.com Significance of Me ...

Geopolitical Impact - The U.S. captured Maduro in Venezuela, leading to a generally positive response in the stock market, particularly in the oil and defense sectors [3][5][6] - Canadian oil stocks are negatively impacted due to competition with Venezuelan heavy crude, which could lower prices for Canadian oil sands [4] - Defense stocks are rising due to geopolitical tensions and potential contracts for infrastructure development in Venezuela [5][6] Market Trends - Memory and storage stocks have surged, with Sandisk up 36% in the past week and 71% in the past month, indicating a high demand for memory chips driven by AI developments [10][11] - Companies like Oklo and Vistra are gaining attention as they provide alternative power solutions for data centers, reflecting the growing need for energy in the tech sector [12][13] - Caterpillar's stock is also rising as demand for equipment to build data centers increases [14][15] Labor Market Insights - The unemployment rate held steady at 4.4%, with a slight increase of 50,000 jobs in December, indicating a stagnant job market [17][19] - The labor participation rate has decreased, suggesting some individuals may have exited the workforce [18] - There is a notable shift where individuals with coding skills may need to transition to construction roles to support data center development [21][26] Company-Specific Developments - Roblox's stock has declined by about 10% in the past week and 45% since its last earnings report, attributed to new age verification requirements for chat, which may hinder user participation [27][28][30] - The company faces public pushback and lawsuits regarding safety concerns on its platform, highlighting the need for self-regulation in the tech industry [29][30] Economic Indicators - The upcoming CPI report and earnings from major financial institutions like Citi and Bank of America will provide insights into economic activity and consumer spending [33][34] - The trucking firm JB Hunt's earnings report will also serve as an economic indicator, reflecting overall market conditions [35] Future Market Outlook - The year 2026 is viewed as a pivotal year for the market, with ongoing debates about whether the AI sector is in a bubble, as many stocks are trading at high valuations [37][39] - External geopolitical events, such as tensions with China and the situation in Ukraine, will likely influence market dynamics throughout the year [40][41] - The political landscape, including the upcoming midterms, may set the tone for market behavior in the latter half of the year [42][43]

Market Overview - The Dow Jones Industrial Average (DJI) and S&P 500 (SPX) reached record highs following the U.S. capture of Venezuelan President Nicolás Maduro, positively impacting the defense and energy sectors [1] - The DJI retreated from its first close above 49,000 as President Trump halted dividends and stock buybacks for defense companies, while oil prices faced pressure from oversupply concerns [1] Energy & Defense Sector - The regime change in Venezuela led to significant gains in the defense and energy sectors, with Chevron (CVX) and Exxon Mobil (XOM) shares rising after President Trump indicated U.S. oil companies would be heavily involved in Venezuela's oil industry [3] - Lockheed Martin (LMT) and Huntington Ingalls Industries (HII) benefited from increased geopolitical tensions, while Northrop Grumman (NOC) and General Dynamics (GD) saw their shares rally following calls for a higher military budget from President Trump [4] Technology Sector - The Consumer Electronics Show (CES) showcased significant developments, including Intel (INTC) launching a new AI chip for laptops, which posed challenges for Advanced Micro Devices (AMD) [4] - Mobileye Global (MBLY) announced the acquisition of humanoid robot startup Mentee for $900 million, while Jefferies downgraded Adobe (ADBE) due to AI competition [4] - Cloud company CoreWeave (CRWV) received an upgrade from D.A. Davidson, and Palantir Technologies (PLTR) saw increased options activity from bullish investors [4] Upcoming Earnings Season - The first earnings season of 2026 is set to begin next week, with major banks including Bank of America (BAC), Citigroup (C), Goldman Sachs (GS), JPMorgan Chase (JPM), Morgan Stanley (MS), PNC (PNC), and Wells Fargo (WFC) expected to report [5]

Core Insights - Meta has announced three agreements to secure nuclear power for its data centers, partnering with startups Oklo and TerraPower, as well as established energy company Vistra [1][2][3] Group 1: Agreements and Capacity - Meta's deals aim to add between 1 to 4 gigawatts of generating capacity by the early 2030s, with a significant portion of the new power flowing through the PJM interconnection [4] - The 20-year agreement with Vistra will provide Meta with 2.1 gigawatts from two existing nuclear plants in Ohio, with additional capacity upgrades expected to generate 433 megawatts [5] - Oklo will supply 1.2 gigawatts, with plans to start power delivery by 2030, while TerraPower aims to begin supplying electricity by 2032 [8][10] Group 2: Technology and Cost Considerations - Existing reactors are currently the cheapest source of baseload capacity, prompting Meta to explore partnerships with SMR startups like Oklo and TerraPower [3][12] - TerraPower estimates it can reduce costs to $50 to $60 per megawatt-hour, while Oklo targets $80 to $130 per megawatt-hour for future plants [12] - Oklo's reactors will need to be built in sufficient numbers to meet Meta's demand, with each reactor producing 75 megawatts [9] Group 3: Industry Trends - The demand for stable, 24/7 electricity from nuclear power is increasing among tech companies, driven by their growing AI ambitions [2] - The race for data center power is benefiting both startups and existing nuclear reactors, albeit in different ways [2]

Core Insights - Meta Platforms has entered into 20-year agreements to purchase power from three Vistra nuclear plants in the US and is collaborating with two companies to develop small modular reactors (SMRs) [1][4][10] Group 1: Agreements and Power Supply - The agreements will provide up to 6.6 gigawatts of nuclear power by 2035, with Meta purchasing power from Vistra's Perry and Davis-Besse plants in Ohio and Beaver Valley plant in Pennsylvania [3][7][10] - Meta's partnership with Oklo aims to develop up to 1.2 gigawatts of energy in Ohio as early as 2030, supporting early procurement and development [11] - The company will also help fund TerraPower's development of two reactors to generate up to 690 megawatts of power as early as 2032 [8] Group 2: Industry Context and Implications - The move is part of a broader strategy by Meta and other Big Tech companies to secure long-term electricity supplies as demand from artificial intelligence and data centers rises for the first time in two decades [3][4] - Meta's agreements, along with a previous deal with Constellation to keep an Illinois reactor operating for 20 years, position the company as a significant corporate purchaser of nuclear energy in American history [5] - Critics express concerns that SMRs may struggle to achieve economies of scale similar to current large reactors, and there are currently no US SMRs in commercial operation [5][7]

Core Insights - Meta Platforms is advancing its sustainable energy initiatives by establishing long-term nuclear power agreements with Oklo, Vistra, and TerraPower to support its AI data centers [1][2] Group 1: Partnerships and Capacity - Meta is collaborating with Oklo to develop small modular reactors (SMRs) in Ohio, aiming for a capacity of up to 1.2 gigawatts (GW) by 2030 [2] - The agreement with Vistra involves 20-year purchases from three existing plants, allowing for expansions to deliver up to 6.6 GW by 2035 [2] - TerraPower's partnership includes funding for two reactors with a capacity of up to 690 megawatts by 2032, with options for six additional reactors by 2035 [2] Group 2: Industry Context - These nuclear partnerships are positioned as a reliable, low-carbon energy source to meet the increasing power demands of AI technologies amid existing grid constraints [3] - Oklo specializes in advanced nuclear technology, focusing on SMRs designed for high-demand applications like AI data centers [4] Group 3: Market Performance and Valuation - Oklo's stock experienced a significant increase of 238% in 2025, outperforming the S&P 500, although it has faced volatility since then [5] - Valuation metrics for Oklo are challenging due to its pre-commercial status and ongoing losses, with a market cap of $15 billion reflecting speculative growth rather than historical averages [6]

NANO Nuclear Energy Inc. (NASDAQ:NNE) traded higher early Friday as investors reacted to legal and sector news. • Nano Nuclear Energy shares are powering higher. Why are NNE shares rallying?Market MomentumTraders lifted nuclear shares after data center energy deals boosted investor confidence across the clean power sector.Vistra Corp. (NYSE:VST) and Oklo Inc. (NASDAQ:OKLO) climbed after signing long-term supply agreements with Meta Platforms, Inc. (NASDAQ:META).Those announcements sparked broader interest i ...