What Happened?
Shares of home energy technology company Enphase (NASDAQ: ENPH) jumped 10.8% in the afternoon session after Federal Reserve Chair Jerome Powell hinted that interest rate cuts could be coming soon. The broader market jumped after Federal Reserve Chair Jerome Powell hinted that policymakers could soon be cutting interest rates. Companies that benefit from lower borrowing costs, including solar power providers like Enphase, saw their shares advance as rate cuts can make financing solar installations more affordable for customers.
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What Is The Market Telling Us
Enphase’s shares are extremely volatile and have had 47 moves greater than 5% over the last year. But moves this big are rare even for Enphase and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 1 day ago when the stock dropped 4.2% on the news that President Donald Trump announced his administration would not approve new solar or wind power projects, causing a sell-off in the renewable energy sector. The move came after President Donald Trump posted on his social media platform, Truth Social, that “We will not approve wind or farmer destroying Solar,” adding, “The days of stupidity are over in the USA!!!” This statement escalated his campaign against renewable energy development. The remarks prompted a sector-wide sell-off, pressuring solar and wind stocks broadly. Other renewable energy companies, such as Sunrun and First Solar, also saw their shares plummet following the announcement, reflecting investor concern over the future of green energy projects under his administration.
Enphase is down 46.5% since the beginning of the year, and at $38.18 per share, it is trading 69.1% below its 52-week high of $123.65 from August 2024. Investors who bought $1,000 worth of Enphase’s shares 5 years ago would now be looking at an investment worth $520.12.
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