Solar Stocks rally following Federal Reserve's decision to hold Interest rates steady.
Technical Analysis NASDAQ:FSLR has been moving and is now finding some support near the $165 area. After experiencing a "Death Cross" on the 26th Sept, 2023 NASDAQ:FSLR has since shown signs of a resurgence with the stock surging as high as 6.57% as of the time of writing.
The clean energy sector has gone wild with solar stocks enjoying a massive rally after the U.S. Federal Reserve announced that it will keep short-term interest rates unchanged and forecast three cuts next year, a potentially very bullish outlook for 2024.
Interest rates have increased sharply over the past few years, going from about half a percentage point during the pandemic to more than 4% recently thanks to the Fed’s tapering program. However, a less hawkish Fed has seen rates reverse. The 10-year treasury yield hit a 16-year high of 4.98% in October but has pulled back to 3.91% currently.
Solar energy stocks have responded strongly because lower interest rates are likely to have a direct impact on volume and margins in 2024.