What Happened?
Shares of solar tracking systems manufacturer Array (NASDAQ: ARRY) jumped 5% in the afternoon session after positive macro developments for the solar industry, including a pledge from China's energy regulator to address price wars and a new clean energy investment program in New York.
China's energy regulator pledged to crack down on intense competition and overcapacity within the solar manufacturing sector. This official campaign aimed to better balance production with demand and was reported to have already lifted market sentiment toward solar stocks.
The shares closed the day at $7.98, up 3.8% from previous close.
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What Is The Market Telling Us
Array’s shares are extremely volatile and have had 75 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 14 days ago when the stock gained 2.9% on the news that an unexpected drop in the Producer Price Index (PPI) for August, signaled easing inflation and raised expectations for a potential Federal Reserve interest rate cut. The U.S. Bureau of Labor Statistics reported that the PPI, which measures wholesale prices, edged down 0.1% last month, contrary to analyst expectations for a 0.3% rise. This data gives the Federal Reserve more flexibility to consider lowering interest rates to stimulate the economy.
According to the CME FedWatch Tool, the probability of a quarter-point rate cut at the next Fed meeting has surged to 90%. Lower interest rates typically benefit the industrial sector by reducing borrowing costs for new projects and expansion, potentially leading to increased economic activity and demand for industrial goods.
Array is up 18.2% since the beginning of the year, but at $7.97 per share, it is still trading 16.6% below its 52-week high of $9.56 from August 2025. Investors who bought $1,000 worth of Array’s shares at the IPO in October 2020 would now be looking at an investment worth $218.66.
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