TeraWulf Inc. (NASDAQ: WULF) shares traded lower on Tuesday, falling 11.42% to $15.60, as broader declines in AI cloud services stocks weighed on investor sentiment. The drop reflects growing concerns over rising inflation and surging bond yields, which have soured appetite for high-growth companies that rely heavily on borrowed money to fund customer-driven capital spending.

Rising Oil Prices and Bond Yields Squeeze Growth Stocks

Oil prices spiked overnight after the Trump administration allowed a temporary ceasefire with Iran to expire, prompting Tehran to threaten a more aggressive military response. Traders interpreted this as a sign that shipping through the Strait of Hormuz, a critical passage for global oil, could face fresh disruption, feeding worries that energy-driven inflation could reaccelerate.

This dynamic directly impacts stocks like TeraWulf. When energy prices rise, inflation tends to run hotter, making it harder for the Federal Reserve to justify cutting interest rates. Bond markets reacted immediately, pushing the 10-year Treasury yield up to 4.74% and the two-year yield up to 4.19%.

Higher bond yields hit AI infrastructure stocks hard for two reasons:

• Companies like TeraWulf are valued largely on profits investors expect years from now. Rising yields make those future profits worth less in today's dollars, as investors can earn more by holding bonds instead.
• Much of the sector's growth is tied to customer capital spending funded through borrowing. When borrowing costs climb, that spending becomes more expensive to finance, potentially slowing the demand these companies count on for growth.

TeraWulf's Chart Shows a Stock Still Fighting its Downtrend

TeraWulf shares are trading well below key trend lines watched by longer-term investors. The stock sits about 10.7% under the 20-day average of $17.56, roughly 26.5% under the 50-day average of $21.32, and around 11.6% under the 200-day average of $17.74.

When a stock sits this far below its major averages, rallies tend to face more resistance due to overhead supply from investors looking to sell into any bounce. The 20-day average sitting below the 50-day average points to weaker momentum over the past couple of months. However, the 50-day average still holding above the 200-day average suggests the stock's longer-term uptrend has been dented rather than fully broken.

The MACD has crossed above its signal line and is now reading positive territory on its histogram. This combination usually points to a fading downswing rather than confirmation that a new uptrend has taken hold.

Key Technical Levels

Two price levels stand out for traders. On the upside, the $17.50 area overlaps with both the 20-day and 200-day averages and could act as a ceiling if the stock tries to push higher. To the downside, $14.50 is the zone most likely to draw buyers back in if selling picks up again.

Zooming out, TeraWulf peaked in June, which also marked its 52-week high, before setting a swing low in July. The stock's recent move looks more like an early attempt to stabilize after that peak than a genuine return to an uptrend.

TeraWulf Inc. (NASDAQ: WULF) shares surged 19.32% to $18.00 on Thursday, driven by a regulatory green light for a significant asset acquisition in the power generation sector. The price action followed an order issued Wednesday by the Federal Energy Regulatory Commission (FERC) authorizing the disposition of jurisdictional facilities under Federal Power Act section 203(a)(1)(A). This decision permits TeraWulf subsidiary Chesapeake Data to purchase 100% of the membership interests in Morgantown Power from Lanyard Power Holdings, marking a strategic expansion into thermal generation capacity.

The acquisition targets Morgantown Generating Station in Maryland, which houses four oil-fired generating units with a combined capacity of approximately 216 megawatts. By securing these assets, TeraWulf enhances its energy infrastructure portfolio, potentially supporting its data center operations through dedicated power supply arrangements. The FERC order under section 203(a)(1)(A) is a critical procedural step, ensuring regulatory compliance for the transfer of utility assets and validating the strategic fit for Chesapeake Data’s operational roadmap.

Technical Analysis and Key Levels

Despite the sharp intraday rally, TeraWulf remains in a rebuilding phase following a downswing in July. The stock trades 7.5% below its 20-day simple moving average (SMA) of $19.63 and 21.9% below its 50-day SMA of $23.24, indicating persistent overhead supply that may cap immediate upside momentum. However, the shares remain 3.6% above the 200-day SMA of $17.53, preserving the longer-term uptrend structure established earlier in the year.

Traders are monitoring whether this move initiates a trend reversal or merely represents a bounce within a broader pullback. The $20.50 resistance level aligns with the need to reclaim short-term trend control, while $16.50 serves as a defensive floor near the 200-day moving average where dip-buyers may intervene.

What the Numbers Show

The technical backdrop reveals a divergence between short-term weakness and long-term strength. While the stock is trading below both the 20-day and 50-day SMAs, signaling recent selling pressure, it holds firmly above the 200-day SMA. This positioning suggests that while near-term volatility remains elevated, the primary trend identified by the August 2025 golden cross (where the 50-day SMA crossed above the 200-day SMA) remains intact. The 12-month gain of 262.97% underscores the stock’s high-beta nature, where regulatory catalysts like the FERC approval can trigger sharp countertrend swings even amidst broader consolidation patterns.