Nuclear Power Stocks Stir Anxiety After Major Funding Cuts Proposed

NEW YORK, NY – The U.S. market faced a downturn on Monday, April 22, 2025, as investors reacted to reports of significant funding cuts for clean-energy projects. Among the stocks impacted, Oklo fell by 6.3%, while Constellation Energy saw a 6.5% decline. Nano Nuclear Energy was hit hardest, dropping 10.8% by mid-morning.

The turmoil followed a report from The Wall Street Journal detailing nearly $10 billion in proposed cuts from the U.S. Department of Energy. These cuts would affect a range of clean-energy initiatives, including nuclear energy, hydrogen production, and carbon capture technologies. The potential loss of funding has left thousands of jobs within the Department of Energy at risk.

While the uncertainty continues, the DOE has stated that no final decisions have been made and various plans are still under consideration, echoing similar comments made earlier in the month.

Despite the negative news, some analysts believe that nuclear power, particularly projects like the Palisades nuclear plant restart in Michigan funded under the Biden administration’s Inflation Reduction Act, may not be as vulnerable as other green technologies. This could provide a glimmer of hope for the nuclear sector amid the uncertainty.

Industry experts previously predicted a potential renaissance for nuclear power under the current administration, even as other clean-energy initiatives face increased scrutiny. Investors are urged to consider profitable nuclear companies, like Constellation Energy, which posted a trailing net profit of $3.7 billion, as safer investments compared to those like Oklo and Nano Nuclear Energy, neither of which are currently profitable.

Looking ahead, investors should stay alert to developments regarding government energy funding, as the fate of the nuclear industry may hinge on upcoming decisions regarding clean-energy allocations.