Today, clean energy stocks rose on the back of Wall Street declaring Kamala as winner in her debate with Donald Trump.
Solar companies in particular are experiencing significant growth.
Sunrun, First Solar and SolarEdge are all up more than 8%.
Solar stocks have rallied despite a general downturn in the market on the hope that Harris, who is a proponent of clean energy and a powerful advocate, will boost the sector should she become the next US President.
Ed Mills of Raymond James believes that while the impact on the future is uncertain due to the election, the clean energy sector will benefit from the momentum generated by Harris in the short term.
Invesco’s Solar ETF is up more than 3 percent today. However, it has fallen 28% for the year.
Harris’ victory could increase solar stock
The betting markets are now in Kamala Harris’ favor, which is good news for the clean energy industry.
Harris is seen by many as a leader in the energy transformation, but if Donald Trump wins reelection they expect him to weaken some parts of Inflation Reduction Act.
Harris highlighted the substantial investments made by the Biden Administration in the clean energy sector during the debate. Harris said:
As vice president, I am proud to say that in the past four years we invested one trillion dollars into a clean-energy economy, while increasing gas production at home to unprecedented levels.
She also underlined the importance of clean energy in driving investment in US made products including automobiles.
Solar stocks could be further boosted by interest rate reductions
Wall Street analysts believe that the Inflation Reduction Act will remain in place if Harris is elected president of the United States in 2024.
If Trump wins, some of the IRA could be repealed. This includes tax credits for electric cars.
Market is cautious about the impact of solar on companies.
The solar stocks faced challenges in this year’s market due to the higher cost of solar panels and interest rates.
Companies like Sunrun SolarEdge and First Solar may rally over the next few months as it is expected that the US Federal Reserve will announce a rate reduction on September 18th.
However, the Fed may be influenced by inflation statistics.
Core consumer prices (CPI), which is the core measure of inflation, rose by 0.3% in August compared with a forecasted 0.2%.
The Fed may be pushed to lower interest rates more slowly, and this could affect the recovery of the solar industry.
The ICD first published the article Solar stocks soar as Wall Street proclaims Kamala Harris winner of Trump’s debate appeared.
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