USA, Harris effect: photovoltaic companies soar on Wall Street
The positive performance of Kamala Harris at the September 10 debate against Donald Trump has strengthened the chances of the current deputy Joe Biden to become the first female president in U.S. history at the November vote. And it has boosted the shares of those companies that are betting on Harris’ victory because they believe it will be beneficial for their businesses in the coming years.
Trump-Harris: The Effects on the Stock Market
The most significant gains in the sessions following the debate emerged in the solar field. Harris proposes to push forward Biden’s plan launched with the Inflation Reduction Act of 2022, to subsidize and strengthen American investment in clean technologies, renewable energy and related supply chains. The current vice president proposes to mobilize 10 trillion dollars in investments by the end of the decade to clear the green transition in the US, and solar is expected to be a protagonist.
Harris Effect: Photovoltaic Companies Soar
And so in the session of September 11th at least seven companies listed on Wall Street operating in the photovoltaic field have run on the stock exchange: Solar Edge with +4.43%, Sun Run with +5%, Nextracker with +5.80%, Array Technologies with +6.33%, Canadian Solars with +6.47%, Shoals Technologies with a robust +7.80% and, above all, First Solar which exceeded +15% in one session.
Furthermore, CNBC recalls that “theInvesco Solar ETF (TAN) and iShares Global Clean Energy ETF (ICLN) gained 6% and more than 3%, respectively.. Benchmarks have fallen 24% and 7.7% this year, as uncertainty over the outcome of the election has clouded the outlook for the clean energy sector. A clear vote, in days when oil is also hitting a three-year low. And it shows the confidence of a sector in the continuation of the Dem administration. It will still be a long one. But there are those who are already “long” on the stock market on Harris-one as the preferred scenario to Trump 2.0. And it is not difficult to understand why.
Harris’ Green Wave of Subsidies
The list of companies that could benefit from Harris’s “green” subsidies, looking at Biden’s experience, is remarkable. Fhot air on network operators, non-photovoltaic renewable generation, production of materials for the technology industry and energy infrastructure managers.
Will the effects spread to Europe? Despite fears of a “theft” of American subsidies from European companies, in recent months Daniel Gros, director of the‘Institute for European Policymaking at Bocconi Universityi, stressed that Biden’s IRA would not create “insurmountable obstacles for European and Italian companies in the US green products market. The most important thing is that this market will grow a lot thanks to the IRA”. This speech seems even more concrete in the case of a Harris presidency. Still far from being shielded, however.
But it is the voters who decide the president, not the stock market.
The polls are absolutely tied and in the key states a more traditional type of industry and politics will decide. The spotlight is on Pennsylvania, for example, where Biden and Harris are chasing Trump in wanting to oppose the sale of US Steel to the Japanese of Nippon Steel fearing an electoral bloodbath in the most unstable state. Investments and protectionism will go hand in hand in the campaign: because in the end the voters decide, not the Stock Exchange. Which in any case shows the thermometer of political balances and their developments.
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