NuScale Power Stock Plunges 37% On Speculative Tech Selloff
1h ago|4 min readStandard
Fazen Markets Editorial Desk
Collective editorial team · methodology
nuscale-powersmall-modular-reactor
Fazen Markets Editorial Desk
Collective editorial team · methodology
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NuScale Power shares fell 37% on June 5, 2026, leading a sharp selloff among speculative technology and pre-revenue industrial companies. The move erased approximately $1.2 billion in market capitalization for the small modular reactor developer and contributed to a 2.1% decline in the iShares Russell 2000 ETF. Yahoo Finance reported the event, which highlights mounting pressure on unprofitable growth stocks in a higher-rate environment.
The selloff in advanced technology names coincides with a macro backdrop of elevated real yields and renewed concerns over credit availability. The 10-year Treasury yield held steady at 4.7% on the day, remaining near its highest level since April. A confluence of catalysts triggered the specific pressure on NuScale, including a failed financing round for a peer in the next-generation nuclear space, Amplify Energy, which disclosed it could not secure a $500 million loan guarantee earlier in the week.
This financing failure amplified existing investor skepticism toward capital-intensive, long-duration projects. Regulatory delays for NuScale's flagship Carbon Free Power Project, which pushed a final construction decision into late 2027, further eroded confidence. The last comparable sector-wide repricing occurred on March 12, 2024, when a basket of pre-revenue climate tech stocks fell an average of 22% over two sessions following similar financing concerns.
The current environment prioritizes demonstrable cash flow and near-term commercialization. Investors are rapidly rotating capital away from concepts requiring multi-year, multi-billion-dollar investment horizons. This shift represents a decisive move from thematic growth investing back toward fundamental scrutiny of balance sheets and project economics.
NuScale Power closed at $4.78, down $2.83 from its previous close of $7.61. The 37% single-day decline is the stock's worst since its public debut via SPAC merger in 2022. Trading volume surged to 42.8 million shares, over 15 times the 30-day average.
| Metric | Before (June 4 Close) | After (June 5 Close) |
|---|---|---|
| Stock Price | $7.61 | $4.78 |
| Market Capitalization | $3.24 billion | $2.04 billion |
The selloff extended broadly across speculative sectors. The ARK Innovation ETF fell 5.2%, underperforming the S&P 500's 0.3% gain. Peer companies in advanced nuclear, hydrogen production, and carbon capture saw declines ranging from 12% to 25%. The volatility index for small-cap stocks, the Russell 2000 VIX, jumped 18% to 28.5, indicating heightened fear. NuScale's year-to-date loss now stands at 64%, compared to the S&P 500's year-to-date gain of 8.1%.
The NuScale-led decline signals a repricing of risk for all companies with distant profitability timelines. Secondary effects are visible in the clean energy equipment sector, with names like Bloom Energy and Plug Power down 7% and 9% respectively. Conversely, established utilities with regulated rate bases and current dividends, such as NextEra Energy and Southern Company, saw inflows, gaining 1.5% and 0.8% on the session.
A key counter-argument is that the selloff creates oversold conditions for firms with legitimate technological moats and committed government backing. The U.S. Department of Energy's Loan Programs Office still holds over $200 billion in available credit authority for energy projects. The risk is that further tightening of financial conditions could delay or cancel these commitments, stranding development-stage companies.
Positioning data shows hedge funds increasing short exposure to the iShares Global Clean Energy ETF while going long traditional utility ETFs. Retail flow into NuScale and similar names via brokerage platforms turned sharply negative, with net selling exceeding $150 million for the day. This indicates a breakdown of the long-term thematic hold strategy that had previously supported these stocks.
The immediate catalyst is the Federal Reserve's policy decision and updated dot plot on June 18. Any indication of a higher-for-longer rate path will extend pressure on speculative tech. NuScale's next major milestone is its Q2 2026 earnings report, scheduled for August 7, where updates on customer commitments and development timelines will be critical.
Key technical levels for NuScale Power are the $4.50 support level, a previous consolidation zone from late 2025, and resistance at $6.00. A break below $4.50 could trigger another wave of automated selling. For the broader speculative tech sector, watch the 200-day moving average for the ARK Innovation ETF; a sustained break below it would confirm the bearish trend.
The Department of Energy's expected announcement of the next round of loan guarantee awards in early July will serve as a litmus test for continued government support. The performance of newly awarded companies in the days following that news will indicate whether investor confidence in public-private partnerships remains intact.
The decline has a contagion effect, particularly on firms reliant on similar project-finance models. Companies like TerraPower and X-energy, which are also developing advanced reactor designs, face higher scrutiny on their capital-raising plans. However, large-cap utilities with existing nuclear fleets, such as Constellation Energy, are largely insulated as their revenue comes from operating assets, not development risk. The divergence highlights a market split between operational cash flow and speculative development.
The current selloff is more focused on fundamental liquidity than valuation multiple compression. The 2021-2022 period saw many de-SPAC stocks fall due to collapsing revenue growth forecasts and dilution from shareholder redemptions. Today's pressure stems directly from the cost and availability of debt capital needed to build physical projects. The average decline from peak for the current cohort is approximately 75%, which is in line with the 80% peak-to-trough decline seen in the 2021-2022 SPAC clean tech index.
Analysts primarily use a probability-weighted net present value model of future projects, discounting estimated future cash flows at a high rate, often 12-15%. Key inputs include the likelihood of regulatory approval, projected construction costs per megawatt, and the future power price under offtake agreements. The recent spike in discount rates, driven by higher risk-free rates, has directly slashed the present value of NuScale's projected cash flows from its first plant, which is not slated for operation until 2031 at the earliest.
The NuScale crash reflects a wholesale withdrawal of capital from long-duration, capital-intensive technology bets in favor of assets with immediate cash generation.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.
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