Solar Energy Sector Sees Upswing

Shares of Enphase Energy, First Solar, and other solar-energy companies received a boost on Thursday following the Federal Reserve's decision to keep its benchmark federal-funds rate steady. This, combined with comments made by Fed Chairman Jerome Powell, was seen as an indication that interest rate cuts are looming.

In morning trading, Sunrun, a leading residential solar panel company, saw its shares surge by about 18%, while Maxeon Solar Technologies, a manufacturer of solar panels, experienced a climb of almost 20%.

Enphase Energy also witnessed a significant jump of 13% in its shares, and First Solar saw an increase of more than 11%. Additionally, the Invesco Solar ETF traded more than 8% higher.

The solar-energy sector has faced significant challenges this year, with reduced government subsidies and longer project completion times dampening investor expectations. As a result, the Invesco Solar ETF is still down around 30% for the year.

Thursday's rally is part of a broader market upswing, particularly benefiting stocks that have been previously beaten down and carry heavy debt loads.

During his statements on Wednesday, Powell indicated that the central bank is moving towards interest-rate cuts due to declining inflation. This represents a change in direction from just two weeks ago when Powell cautioned against discussions of rate cuts being premature.