Why Solar Energy Stocks Cratered Again This Week
Solar energy stocks had another rough week as interest rate fears and new investor lawsuits came to light.
According to data provided by S&P Global Market Intelligence, SunPower (NASDAQ: SPWR) was down by as much as 13.2% this week, (NASDAQ: RUN) dropped by as much as 25.4%, and Sunnova Energy (NYSE: NOVA) was off by 19.1% at its low point. Those stocks closed the week down by 6.6%, 21.3%, and 16.4%, respectively.
The biggest factor hitting solar energy stocks this week was the rise in interest rates. Over the past month, the 1-year U.S. Treasury bond rate has increased from 4.23% to 4.31%. That rise in the market rate was driven by a higher-than-expected inflation reading for February, which made investors think the Federal Reserve will keep its benchmark federal funds rate higher for longer than previously expected.
Source Fool.com
