Clean energy shares ride out latest AI selling wave
Plus, SCOTUS asked to block new California climate reporting rule at 11th hour.
In today’s edition:
— AI markets volatility ensnares clean energy stocks, but they hold their own
— Supreme Court asked to block California climate reporting rule at 11th hour
— Global leaders acknowledge temperatures will surpass the dangerous 1.5°C Paris limit.
— Two California tribes in treaty to restore Eel River after PG&E decommissions two dams.
— Harmful carbon emissions to remain little changed this year despite rise in oil, gas and cement pollution
The weeklong bout of selling in AI stocks caught up with clean energy shares in the past few sessions as investors sold almost everything even possibly linked to the big AI tech companies.
Concern that Nvidia’s (NVDA) earnings tomorrow will confirm suspicions that AI spending has overtaken itself dragged down not only big tech stocks but also weighed on the energy providers needed to fuel their data center expansion.
Despite the heavy selling, many green stocks and clean energy ETFs were able to buck the trend and rose slightly late Tuesday.
Some of the stronger ones were Constellation Energy (CEG), First Solar (FSLR) and MP Materials (MP). Tesla (TSLA) shares were lower, however.
The energy stocks had begun to break out from their link to the AI developers in their own theme of energy security and rising prices over the last month. But the AI concerns have caught them up on this latest volatility. At some point when it bottoms out, the energy stocks should be among the first to bounce back.
Anyone expecting Nvidia to come to the rescue Wednesday would be betting on a long shot but it is clear that for this market those earnings are the next major event.
If you have ideas or suggestions for us, contact me directly at
dcallaway@callawayclimateinsights.com.
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