Oklo Stock Decline Continues Despite DOE Contracts as Market Sentiment Sours

Oklo Inc. shares extended losses Thursday, down 6.1% by midday despite securing three Department of Energy contracts for small modular reactors. The nuclear startup's decline reflects broader market concerns as inflation data dampens rate-cut hopes.

Wednesday's DOE announcement initially boosted shares, but enthusiasm waned as investors noted eight competitors received similar awards. The contracts, targeting July 2026 operational dates, failed to distinguish Oklo in the crowded SMR space.

Market pressures intensified with fresh Bureau of Labor Statistics data showing accelerating inflation. The report reduces likelihood of Federal Reserve rate cuts this year - a headwind for capital-intensive energy projects. Oklo's cash burn rate remains unaddressed as financing costs potentially rise.