Clean stocks surge on Democratic sweep
A Democrat-led Congress is likely to push to resurface tax benefits for renewables, but clean energy legislation is vulnerable to Trump’s veto. Tuesday’s Democratic sweep shook the energy stock market, boosting clean energy company shares on the expectation of a more renewables-friendly Congress and casting a pall on oil. Solar companies First Solar and SunRun both rose around 8%; wind companies Orsted and Vestas, and the EV makers Lucid and Rivian also rallied. Chevron and ExxonMobil fell, meanwhile, weighed by the prospect of lower oil prices if Democrats push for a quicker end to the war in Iran. And the likelihood that new state and local-level Democratic leaders could impose restrictions on data center development weighed on companies riding the AI energy demand boom, including fuel cell battery maker Bloom Energy and gas turbine maker GE Vernova. A Democrat-led Congress is likely to push to resurface tax benefits for renewables, and to push to reinstate other forms of Congressionally allocated clean energy funding. Still, the initial market reactions may overstate how much will change under a split government, TD Cowen’s John Miller told Semafor: Democratic infighting could i
A Democrat-led Congress is likely to push to resurface tax benefits for renewables, but clean energy legislation is vulnerable to Trump’s veto. Tuesday’s Democratic sweep shook the energy stock market, boosting clean energy company shares on the expectation of a more renewables-friendly Congress and casting a pall on oil. Solar companies First Solar and SunRun both rose around 8%; wind companies Orsted and Vestas, and the EV makers Lucid and Rivian also rallied. Chevron and ExxonMobil fell, meanwhile, weighed by the prospect of lower oil prices if Democrats push for a quicker end to the war in Iran.
And the likelihood that new state and local-level Democratic leaders could impose restrictions on data center development weighed on companies riding the AI energy demand boom, including fuel cell battery maker Bloom Energy and gas turbine maker GE Vernova. A Democrat-led Congress is likely to push to resurface tax benefits for renewables, and to push to reinstate other forms of Congressionally allocated clean energy funding.
Still, the initial market reactions may overstate how much will change under a split government, TD Cowen’s John Miller told Semafor: Democratic infighting could impede the passage of permitting reform legislation, and pro-renewables legislation is vulnerable to Trump’s veto.