New era in clean energy stocks begins with rate cut this week

Plus, BP to divest U.S. offshore wind business in favor of solar

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Image: AlexGo - stock.adobe.com.

After months, nay, years of talking about it, the financial markets are finally going to get an interest rate cut from the Federal Reserve this week. Like a new football season at this time each year, that means a brief period of hope and hype will set in as stocks get down to digesting a coming era of cheaper money.

Many of the stocks that missed out on the great, AI-inspired tech run of the past 18 months have now started to rotate back into action, including renewable energy stocks, which have been sorely battered. A strong rally last week in shares such as First Solar FSLR 0.00%↑, NextEra Energy NEE 0.00%↑, and GE Vernova GEV 0.00%↑ highlighted a rotation that could be brief but also could last months as rates start to fall. Utilities have made a move for the first time in months.