The All Ordinaries Index (ASX: XAO) has surged today, primarily due to the strong performance of ASX uranium stocks such as Paladin Energy Ltd (ASX: PDN).
During the morning trade on Thursday, the All Ords has gained a notable 1%.
Let's take a look at the performance of some leading ASX uranium stocks at the same time:
Boss Energy Ltd (ASX: BOE) shares have risen 4% to $1.70
Deep Yellow Limited (ASX: DYL) shares have gained 8.1% to $1.73
Paladin Energy shares are up 4.5% to $8.36
Lotus Resources Limited (ASX: LOT) shares have increased 4.6% to 17.3 cents
Bannerman Energy Ltd (ASX: BMN) shares have climbed 5.7% to $3.18
Here's what's driving investor interest in ASX uranium stocks today.
ASX Uranium Stocks Catch US Tailwinds
Australian uranium miners are benefiting from tailwinds originating from the United States. Two significant events are influencing this surge.
Firstly, the US Department of Energy announced a US$1 billion (AU$1.5 billion) loan to Constellation Energy to support the restart of the Three Mile Island nuclear power plant. The plant was the site of the worst nuclear accident in the US in 1979, with a partial meltdown in one of the units.
On a positive note for ASX uranium stocks like Paladin Energy, US President Donald Trump is a staunch advocate of nuclear energy, urging its use to support the rapid growth of AI data centers.
Microsoft Corp (NASDAQ: MSFT) has contracted the Three Mile Island nuclear facility to power its data center expansions. The plant is expected to resume operations in 2027.
Commenting on the "American nuclear renaissance," US Energy Secretary Chris Wright told Newsweek:
Constellation's restart of a nuclear power plant in Pennsylvania will provide affordable, reliable, and secure energy to Americans across the Mid-Atlantic region. It will also help ensure America has the energy it needs to grow its domestic manufacturing base and win the AI race.
What Other US Nuclear News is Fueling Investor Optimism?
ASX uranium stocks, including Boss Energy, Paladin Energy, and Deep Yellow, are also buoyed by news that the US plans to purchase up to 10 new large-scale nuclear reactors.
In an intriguing development, Bloomberg reports that part of Japan's US$550 billion pledge to finance US projects may be used to fund these reactors.
Energy Department chief of staff Carl Coe stated, "The role of having the government involved in private markets is sacrosanct — you just don't do it. But this is a national emergency."