Nucor (NUE) Stock Surges 11%. What Are The Reasons For The Rapid Jump In The Stock?

The graph clearly shows that over the past 5 days the stock has improved considerably. The stock price that was $106.10 on Wednesday dropped to $101.50 on Thursday. On August 6, it began to gradually recover and increased the price by almost $3, and on Monday it was $107.43. On Tuesday it instantly increased to $118.10. Nucor stock boomed on August 10, jumping 10.3% to another high by 2:56 p.m. EDT.
Nucor is a recurrent and foreseeable stock, so the rise this large in one day’s time is a beautiful uncommon accomplishment, and only some really important news may be the reason for this. Today, the Senate passed a $1 trillion bill to modernize America’s infrastructure.

The first reason: The infrastructure bill proposes to waste billions of dollars on streets, railroads, bridges, ports, airports, for the construction of which it is impossible to do without steel. The second reason why Nucor shares are jumping: higher steel prices. The cost of a U.S. hot-rolled coil (HRC), for instance, crossed $1,900 per short ton on August 10. U.S. HRC cost has bounced more than fourfold in only the previous year.

Robert McDowney

Author

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