Solar and Clean Energy Stocks Rise as Low Inflation Data Boosts Rate Cut Hopes (NASDAQ:ENPH)

Shares of solar and alternative energy companies rose on Thursday, led by lower-than-expected inflation data that raised hopes the Federal Reserve will start cutting interest rates sooner rather than later.

US consumer prices fell for the first time for the last time in more than four years, while the core CPI, which excludes volatile food and energy prices, rose just 0.1%, boosting interest-rate-sensitive industries.

Sunnova Energy (NOVA) is leading solar stock +19% and Sunrun (RUN) +15.4%with strong performance also seen for Maxeon Solar (MAXN) +14.2%Array Technologies (ARRY) +9.3%Emeren (SOL) +8.9%Canadian Solar Energy (CSIQ) +7.9%SunPower (SPWR) +7.1%Enphase Energy (NASDAQ:ENPH) +4.6%JinkoSolar (JKS) +4%First Solar (FSLR) +2.1%.

Other clean energy names that have enjoyed major success include Stem (STEM) +11.3%Clean Energy Fuels (CLNE) +8.9%Power plug (PLUG) +8.9%Fuel Cell Energy (FCEL) +8.1%TPI composites (TPIC) +6.4%Fluence Energy (FLNC) +5.5%Westport Fuel Systems (WPRT) +5.2%Bloom Energy (BE) +4.4%Ballard Power (BLDP) +4.2%.

ETFs: (TAN), (FAN), (ICLN), (QCLN), (PBW), (PBD), (ACES), (CNRG), (ERTH), (SMOG), (XLU)

The solar energy sector has been struggling with low demand and high interest rates for months, and analysts at BMO Capital predict that most solar companies will continue to struggle in the upcoming earnings season.