Clean energy stocks rise in a positive sign for Democrats’ midterms prospects: Analyst
Climate Insights newsletter writer David Callaway writes that Wall Street would be volatile until the election results were finalised
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Your support makes all the difference.Stocks in some clean energy companies were up sharply on Tuesday in a possible sign investors were confident of a strong showing for Democrats in Tuesday’s midterm elections.
Shares in lithium battery provider Albemarle Corp soared nearly seven per cent to hit a 52-week high.
And Energy Recovery, which creates seawater desalination equipment, was also up seven per cent when markets closed at 4pm on Tuesday.
Stocks in clean exchange-traded funds such as the Invesco Solar (TAN) and iShares Global Clean Energy (ICLN) also saw gains on Tuesday.
In his Climate Insights newsletter, David Callaway wrote that stocks had traded higher going into Election Day on expectations the Republicans will force gridlock on President Joe Biden’s last two years of office.
“One of the most reliable traditions on Wall Street is that stocks usually rise after midterms reset the process,” Mr Callaway, an editorial adviser to The Independent, wrote.
“But one sector, the cleantech sector, is hanging onto slim hopes that the Democrats retain the Senate, as the major spending tied to Biden’s signature climate agenda, the Inflation Reduction Act, will depend on a guiding hand from the left preventing legal and administrative obstacles being thrown in its way.”
Mr Callaway noted that clean energy stock prices had closely followed polling data for Democratic Senate candidates in recent weeks.
He said stocks would continue to bounce around for at least a few days until the outcome of knife-edge Senate races in Georgia and Pennsylvania were confirmed.
“But soon, investors will have a clear idea where the bull market is for the next two years: either the clean energy stocks or more rallies in oil companies.
“For the climate, as for Democracy, there’s a lot at stake tonight.”
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