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Investing.com -- Shares of Peabody (NYSE: BTU) climbed 5% in after-hours trading on Tuesday, building on a 9% increase during the regular session, following President Trump's announcement of an executive order aimed at bolstering U.S. coal mining.
Trump's statements on Tuesday underscored a significant push by the administration to revitalize the coal industry. The President directed the Department of Justice to challenge local coal regulations and signed an executive order to strengthen the nation's electric grid. Trump emphasized the need to more than double current electricity production and indicated that the Defense Production Act would be utilized to protect the coal sector.
In a series of announcements, Trump assured coal investors of structural and legal guarantees that their coal businesses could not be terminated. He also instructed the Energy Secretary to invest in next-generation coal technology.
The market's positive reaction to these developments reflects investor confidence in the administration's support for the coal industry. The President's commitment to protecting coal investments and the promise of advanced coal technologies suggest a more favorable regulatory and operational environment for coal companies like Peabody.
While the broader implications of these policies on the global trade and energy landscape remain to be seen, for now, Peabody's stock surge indicates a market buoyed by the prospect of increased government backing for coal power.
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