Climate Changed
Market Plunge Wipes Out Solar’s Biggest Rally in Four Months
- Despite gains, solar remains a volatile bet on Wall Street
- ‘It’s inherently a high-risk type of business’: Kit Konolige
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Last week, solar stocks capped their biggest rally in four months, bolstered by bullish earnings reports from U.S. equipment manufacturers Enphase Energy Inc. and SunPower Corp.
On Monday, those gains were largely gone -- wiped out by an escalating trade war between U.S. and China that has American stocks careening toward the biggest drop of the year. As good as last week’s earnings were, the solar industry remains a high-risk bet in Wall Street’s eyes, leaving it vulnerable to big swings when the broader market turns, said Kit Konolige, an analyst at Bloomberg Intelligence.