Green Energy Stocks Rise After Presidential Debate

Major U.S. equities indexes recovered from early losses to close Wednesday’s session higher.

The volatile trading day followed the morning’s release of the latest Consumer Price Index (CPI) data, which showed price pressure abating in August and solidified expectations for a minimal interest-rate cut at the Federal Reserve’s upcoming meeting. Market participants also digested the financial implications of Tuesday evening’s presidential debate.

The S&P 500 gained 1.1% on the day, while the Dow added 0.3%. Outperformance in the tech sector, buoyed by a recovery in shares of Nvidia (NVDA) and other artificial intelligence (AI) players, helped the Nasdaq jump 2.2%.

Vice President Kamala Harris’s debate performance helped boost shares of companies in the green energy industry. If Harris wins the election, she is likely to continue Biden administration policies aimed at promoting clean energy solutions. Shares of solar panel maker First Solar (FSLR) led the S&P 500 higher, skyrocketing 15.2%.

Shares of Albemarle (ALB), the world’s largest lithium producer, soared 13.6% following reports that a major battery producer in China intends to scale back its lithium production. Slumping lithium prices have weighed heavily on Albemarle’s share price performance this year, but UBS analysts believe the production cuts could help rebalance global supply-and-demand dynamics, representing a possible inflection point in the lithium market.

AES Corp. (AES), a Virginia-based power utility with a clean energy focus, may have also benefitted from the bright outlook for green energy following the debate, as its shares jumped 8.6%. In addition, the investment bank Jefferies initiated coverage of AES stock with a “buy” rating and a $20 price target. Analysts praised AES for its diverse portfolio of energy infrastructure assets around the world, highlighting the company’s shift toward U.S. renewables and away from coal exposure.

Shares of health insurer Humana (HUM) tumbled 5.3%, posting the steepest loss in the S&P 500. Wednesday’s drop extended declines suffered by the stock earlier this week after a report highlighted downside risks to the Star ratings of Humana-operated health plans. The results of the presidential debate added to downward pressure on healthcare stocks, with analysts suggesting that increased odds for a Democratic victory could hurt investor sentiment on Medicare-related businesses.

Conagra Brands (CAG) shares lost 4.0%, receding from a 52-week high posted in the previous session. The company recently added to its strong snack portfolio by acquiring Sweetwood Smoke & Co., the maker of Fatty Smoked Meat Sticks. However, the packaged food company issued lower-than-expected guidance when it reported results in July, citing a difficult consumer environment.

After 155 years in existence, Campbell Soup (CPB) announced a rebranding initiative that includes dropping “soup” from its corporate name. Newly minted as “The Campbell’s Company,” the firm also owns snack brands such as Pepperidge Farm and Snyder’s of Hanover, and it recently added Rao’s tomato sauce to its portfolio. Shares of the company fell 3.8% following the rebranding news.