Why Renewable Energy Stocks Were Rocked by the CPI Report Today

Renewable energy stocks are dropping Tuesday after the Bureau of Labor Statistics reported inflation data for January 2024. The Consumer Price Index (CPI) was up 0.3% from a month earlier and 3.1% from a year earlier, which was above the 2.9% increase analysts expected.

Investors have been watching the CPI for indications about what the Federal Reserve will do with interest rates and the expectation is that higher inflation will lead to higher interest rates in the future.

The reaction was swift today with NextEra Energy (NYSE: NEE) falling as much as 5.05%, SunPower (NASDAQ: SPWR) dropping 15.1%, Plug Power (NASDAQ: PLUG) down 10.7%, and ChargePoint (NYSE: CHPT) declining 11% at their morning lows. At 12:30 p.m. ET, the stocks were down 3.8%, 12.3%, 9.9%, and 9.5% respectively.

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Source Fool.com