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Clean Energy Stocks Plunge Due to Tax Bill, Tech Stocks Hold

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Clean Energy Stocks Plunge Due to Tax Bill, Tech Stocks Hold

Published: by Omor IE

Key Points

  • The tax bill just passed the House, and clean energy stocks have taken a big hit.

  • The broader market is still uncertain, with most sectors in the red.

  • Tech strength is still causing the stock market to stay benign.

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The broader stock market is still down today due to an increase in bond yields. The tax bill also passed the House today, and it is now up to the Senate to bring it into law. The bill will reduce taxes and introduce some new breaks, but there aren’t enough cuts to offset the cuts. Cuts are mainly hurting the clean energy sector, so those stocks have plunged.

In turn, Wall Street expects higher government deficits going forward, and it builds upon the problems that already caused Moody’s to downgrade the U.S. credit rating. It is likely that the administration seeks to fund the tax cuts through tariff revenue.

In the meantime, tech stocks have done quite well recently. Bond yields are showing signs of stabilization. This could spill over into the rest of the market and lead indexes higher later in this trading session.

Here’s a market update as of 11:20 AM (ET) today.

  • The S&P 500 is down 3.17 points, or 0.05%.
  • The Nasdaq Composite is up 95.93 points, or 0.51%.
  • The Dow Jones Industrial Average is down 69.48 points, or 0.17%.

Tech Stocks Still Doing Well

Big-cap tech stocks are mostly up today.

  • Alphabet (NASDAQ: GOOG, NASDAQ: GOOGL) is up 3% due to Google’s recent AI conference. It showed that the company is making solid progress and has even surpassed other AI companies. It has rolled out its AI Mode for search to all users in the U.S.
  • Palantir (NASDAQ: PLTR) is up 3%.
  • Tesla (NASDAQ: TSLA) is up 1.8%.
  • Nvidia (NASDAQ: NVDA) is up 1%.
  • Microsoft (NASDAQ: MSFT) is up 1%.
  • Broadcom is up 1% as well.
  • Amazon (NASDAQ: AMZN) is up 0.76%.

These companies have significant weight in the S&P 500, so they may pull the index back into positive territory.

Notable Gainers Today

  • Navitas Semiconductor (NASDAQ: NVTS) is up 127.3% after Nvidia selected the company to collaborate on the new 800V system.
  • Advance Auto Parts (NYSE: AAP) is up 47% after it posted a narrower-than-expected loss in Q1.
  • LiveRamp Holdings (NYSE: RAMP) is up 23.2%. It posted strong Q4 results by beating revenue. Revenue guidance also exceeded expectations.
  • IonQ (NYSE: IONQ) is up 22.9%. The CEO told Barron’s that it wants to become the Nvidia of quantum computing. Investors believe that quantum computing is the “next big thing” after AI, and they want to catch the Nvidia of this field.
  • Urban Outfitters (NASDAQ: URBN) is up 21.6%. Q1 results topped estimates. EPS came in at $1.16 vs. estimates at $0.82.

Notable Losers Today

  • Sunrun (NASDAQ: RUN) is down 38.7% due to the Tax Bill passing the House. It will pull clean energy-related credits.
  • Solaredge Technologies (NASDAQ: SEDG) is down 24.5%.
  • Enphase Energy (NASDAQ: ENPH) is down 18.3%.
  • EnerSys (NYSE: ENS) is down 16%.
  • Array Technologies (NASDAQ: ARRY) is down 10%. All of these companies are in the clean energy sector.

The image featured at the top of this post is ©Artit Wongpradu / Shutterstock.com.

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