Green-energy stocks tumble on higher chance of a Republican-controlled Senate
- Renewable-energy stocks slumped on Wednesday as investors reacted to the increased prospect of President Trump securing a second term and Republicans retaining the Senate.
- Fossil-fuel stocks climbed in pre-market trading on hopes for further support of their industries and a slower economic transition to renewable energy, although they fell later in the day.
- Enphase Energy, First Solar, SolarEdge, and Renewable Energy shares were all in the red, while Exxon Mobil, Occidental Petroleum, and Schlumberger gained in pre-market before reversing direction.
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Green-energy stocks tumbled on Wednesday as investors reacted to the better-than-expected odds of President Donald Trump winning a second term and Republicans holding the Senate.
Enphase Energy dropped as much as 8%, First Solar fell as much as 10%, SolarEdge Technologies slid as much as 5%, and Renewable Energy dropped as much as 6%, striking a sharp contrast to a 3% gain for the Nasdaq stock index.
Moreover, the two largest clean-energy exchange-traded funds - the Invesco Solar ETF and iShares Global Clean Energy ETFs - both slid more than 2% on Wednesday.
Meanwhile, shares in fossil-fuel companies climbed in pre-market trading on the prospect of continued support for their industries. Exxon Mobil and Occidental Petroleum shares rose as much as 3%, while oil services provider Schlumberger gained as much as 2%.
However, the trio of stocks reversed direction later in the day, falling as much as 2%.
Investors may be betting that even if former Vice President Joe Biden becomes president, his attempts to pass green-energy legislation will be blocked by a Republican-controlled Senate.
US crude futures rose as much as 2.5% to around $38.60 a barrel, climbing for a third day in a row after having hit five-month lows on Monday.