Why Energy Stocks Plunged on Thursday
The energy industry was hit hard on Thursday by a number of factors from falling prices to a speculation about higher interest rates. Markets broadly were down, but there were some notable energy stocks moving.
Shares of Occidental Petroleum (NYSE: OXY) fell as much as 4.9%, Cheniere Energy (NYSEMKT: LNG) dropped 6.2%, SolarEdge Technologies (NASDAQ: SEDG) fell 5.2%, and Plug Power (NASDAQ: PLUG) plunged 8% on Thursday. At 3:30 p.m. ET the stocks were down 2.9%, 3.7%, 2.9%, and 3.7%, respectively.
In data released today, the third-quarter GDP estimate was revised up from 2.9% to 3.2%, indicating a better economy. New jobless claims also fell to 211,000 for the week ended Dec. 10, the lowest level since September. These two strong economic indicators are making the market speculate that the Federal Reserve will keep raising interest rates and keep them elevated longer than investors would like. Stocks are down broadly as a result.
Source Fool.com
