Alex Kimani
Alex Kimani is a veteran financing author, financier, engineer and scientist for Safehaven.com.
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By Alex Kimani – Dec 14, 2023, 7:00 PM CST
- Solar stocks reacted highly after the Fed revealed it would keep rates of interest the same.
- The solar sector’s popular benchmarkInvesco Solar ETF was up almost 10%, showing that this tide has actually raised all boats.
- The huge dive can be chalked up to the reality that solar setups, particularly in the roof market, are mostly driven by rates of interest.
The tidy energy sector has actually gone wild with solar stocks delighting in an enormous rally after the U.S. Federal Reserve revealed that it will keep short-term rates of interest the same and anticipated 3 cuts next year, a possibly really bullish outlook for 2024. Rate of interest have actually increased dramatically over the previous couple of years, going from about half a portion point throughout the pandemic to more than 4% just recently thanks to the Fed’s tapering program. A less hawkish Fed has actually seen rates reverse. The 10-year treasury yield struck a 16-year high of 4.98% in October however has actually drawn back to 3.91% presently.