What Happened?
Shares of infrastructure investment and operations firm FTAI Infrastructure (NASDAQ: FIP) jumped 5.5% in the morning session after its subsidiary, Delaware River Partners, received approval for a major expansion project at its Repauno Port and Rail Terminal in New Jersey.
The approval, granted by the New Jersey Department of Environmental Protection, allows for the construction of two large underground granite caverns. These caverns were designed for storing liquefied petroleum gas and will each have a capacity of over 600,000 barrels. This development is set to position the terminal as a world-class energy hub for both domestic and international supply chains. The project is also expected to bring economic benefits to the area, with the company estimating it will create more than 500 local union jobs during the construction phase.
After the initial pop the shares cooled down to $5.90, up 3.9% from previous close.
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What Is The Market Telling Us
FTAI Infrastructure’s shares are extremely volatile and have had 43 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock gained 3% as a softened tone from President Donald Trump on U.S.-China relations boosted investor sentiment. The positive shift followed a weekend post on Truth Social where Trump stated, "Don't worry about China, it will all be fine!" and expressed a desire to help rather than hurt the country's economy. This statement provided significant relief to markets that had ended the prior week with steep losses. In response, the Nasdaq Composite jumped 2.2%, the S&P 500 gained 1.6%, and the Dow Jones Industrial Average closed 1.3% higher, as investors' fears of escalating trade tensions subsided.
FTAI Infrastructure is down 19% since the beginning of the year, and at $5.90 per share, it is trading 38.5% below its 52-week high of $9.59 from November 2024. Investors who bought $1,000 worth of FTAI Infrastructure’s shares at the IPO in July 2022 would now be looking at an investment worth $1,967.
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