These stocks have the most to lose from Trump's push to lower electricity prices

By Tomi Kilgore

Shares of Constellation Energy and Vistra were the day's biggest decliners amid fears that government intervention may put existing deals at risk

The stocks of Constellation Energy, Vistra dropped after the Trump administration's plan to push large technology companies to help lower electricity prices for consumers spooked investors.

Shares of nuclear-energy companies were taking a beating Friday amid growing fears that the Trump administration's push to lower electricity prices for consumers would lead to increased supply and competition.

The worries come as consumers have been hurt by rising electricity prices amid demand for energy needed to power all the data centers being built in the era of artificial intelligence. In the government's latest inflation report, electricity prices jumped 6.7% from a year ago - more than double the overall inflation rate of 2.7%.

Following a Truth Social post by President Donald Trump earlier this week that he would tackle this problem, the Trump administration called on PJM Interconnection, which operates a power grid that covers 13 states in the mid-Atlantic region and Washington, D.C., to hold an emergency auction to build new power plants, so large technology companies don't pass the cost of higher prices onto the consumer.

The Wall Street Journal had previously reported on the White House's plans.

Trump's post singled out Microsoft (MSFT), saying his team was making sure the company's demand for electricity wouldn't affect consumers' energy bills.

That's likely why shares of Constellation Energy (CEG) sank 9.8%, its worst day in nine months, and enough to pace the S&P 500 index's SPX losers.

In September, Microsoft inked a 20-year power deal with Constellation. As Jefferies analysts wrote, increased government intervention into the marketplace could put existing contracts at risk.

Shares of Vistra (VST), which has a 20-year power deal with Meta Platforms (META), dropped 7.5% to be the S&P 500's second-biggest loser.

Constellation Energy and Vistra have not responded to MarketWatch requests for comment.

Jefferies analysts wrote that Constellation and Vistra, which had been darlings of the AI boom, were among the companies most at risk from Trump's reported plans. Constellation's stock had rallied 57.9% in 2025 after climbing 91.4% in 2024, while Vistra shares gained 17% last year after rocketing 257.9% in 2024.

Talen Energy (TLN) was also on Jefferies's list as most at risk, and the stock tumbled 11.3% on Friday, after surging 86.1% in 2025 and running up 214.8% in 2024.

Meanwhile, GE Vernova's stock (GEV) charged up 6.1%, and was the S&P 500's fourth best performer on the day.

The stock was seen by Jefferies as the "clearest winner" of Trump's plan. Another winner would be Quanta Services (PWR), and the stock rallied 4.3%.

-Tomi Kilgore

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01-16-26 1716ET