The Global X Uranium ETF (NYSEArca: URA), which tracks uranium miners, surged 6.8% on Tuesday, along with the broader rally in the materials sector, after rising 35% so far this month.
The uranium miners segment’s recent strength is being supported by optimism over Trump’s administration.
In an interview with Canada’s BNN network, Cameco CEO Tim Gitzel said that “we’ve heard some encouraging words from the Trump team on nuclear power. We’re optimistic that will help our nuclear industry,” reports Paul R. La Monica for CNN Money.
Cameco (NYSE: CCJ) is the largest component hold in URA’s portfolio, comprising 21.1% of the ETF’s underlying weight.
While Trump has not said much about investing in nuclear power since the election, many observers view Trump as a boon for the industry ahead, especially with the administration revealing a looser stance on regulation. Trump could soften environmental regulations and pull back government support for incentives in alternatives like wind and solar.