Why Oklo Stock Is Dropping Again On Friday
Shares of the nuclear power start-up (NYSE: OKLO) are pulling back Friday, down 9.4% as of 1:37 p.m. ET. The stock is falling alongside the broader market after today's release of a key inflation gauge, the producer price index (PPI), which came in scorching hot: core wholesale prices jumped 0.8%. That was nearly triple what economists expected.
Why does that matter? When inflation runs hot, the Federal Reserve keeps rates higher for longer, which tends to drag down more speculative stocks like Oklo's -- the company is still pre-revenue, and higher rates lower what investors are willing to pay for future returns. Higher rates mean future earnings are worth less today, and Oklo's earnings are very far in the future -- if they materialize at all.
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Source Fool.com
