Why Energy Stocks Jumped on Tuesday
Shares of energy stocks rose sharply early on Tuesday as the market continued to cheer the bailout of bank depositors over the weekend. Regional banking stocks have bounced back in early trading today, and it seems like the banking world is back to some level of normal.
For energy companies, the big impact over the past week has been a sharp reduction in interest rates and changes in how quickly investors think the Federal Reserve can raise rates. Three of the biggest stocks reacting today are Enphase Energy (NASDAQ: ENPH), which popped as much as 4.7%; Plug Power (NASDAQ: PLUG), which was up 4.8%; and Kinder Morgan (NYSE: KMI), up 2.3% at one point. At 11 a.m. ET on Tuesday, the stocks were up 3%, 0.3%, and 2%, respectively.
Some of the moves were driven by investors generally being more bullish on stocks today. But the more meaningful impact is coming from interest rates.
Source Fool.com
