Why Enphase Energy Stock Popped 9.2% Today
Shares of residential solar industry supplier Enphase Energy (NASDAQ: ENPH) jumped as much as 9.2% in trading on Thursday as interest rates dropped and the market rose. Shares closed the day up 6.1%.
The biggest news for solar stocks was interest rates dropping sharply in the U.S. Today alone, the 10-year Treasury yield fell 8 basis points to 3% after climbing for most of the past two months. Interest rates are a big driver of solar growth because projects are often financed for decades, so higher rates make the electricity from a solar installation more costly.
It didn't hurt that the market overall had a great day. The S&P 500 was up 1.5% and the Nasdaq Composite was up 2.3%, so as a highly volatile stock, Enphase will often exaggerate those market moves.
Source Fool.com
