Solar, clean energy stocks surge as Powell points to imminent rate cuts
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Shares of solar and alternative energy companies scored broad gains on Friday, sparked by Federal Reserve Chair Jerome Powell’s strongest signal yet that interest rate cuts are coming.
“The time has come for cuts,” Powell said at the Jackson Hole Economic Symposium, increasingly confident that inflation will return to the central bank’s 2% target, and clean energy stocks rallied with particular strength, as investors hoped a lower-rate environment will benefit the group.
Treasury yields finished broadly lower, with the two-year yield dropping 9.6 basis points to finish at 3.912%, the third-lowest closing level this year.
Enphase Energy (NASDAQ:ENPH) and First Solar (FSLR) were two of the day’s top six gainers on the S&P 500, +6.5% and +5.8%, respectively.
Other solar stock winners included Sunnova Energy (NOVA) +15.8%, SolarEdge Technologies (SEDG) +14.8%, Canadian Solar (CSIQ) +9.8%, Sunrun (RUN) +7.7%, Shoals Technologies (SHLS) +6.8%, Nextracker (NXT) +6.7%, Array Technologies (ARRY) +5.5%, JinkoSolar (JKS) +4.8%, Emeren (SOL) +4.8%, Maxeon Solar (MAXN) +3.9%.
Among other clean energy names: Stem (STEM) +22.2%, Fluence Energy (FLNC) +10.1%, Ballard Power (BLDP) +8.1%, FuelCell Energy (FCEL) +6.3%, Clean Energy Fuels (CLNE) +5.8%, Bloom Energy (BE) +5.5%, Plug Power (PLUG) +3.7%, REX American Resources (REX) +3.7%, Green Plains (GPRE) +3.2%, TPI Composites (TPIC) +3.1%.
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