Why Plug Power Shares Exploded Higher During Tuesday's Session

Plug Power Inc PLUG shares closed higher by 5.21% to $10.91 Tuesday as stocks across sectors rose following a softer-than-expected CPI report, which showed slowing inflation in May. Also, the company on Wednesday will host an Investor Day event.

A lower CPI can signal a stable or improving economic environment, which is conducive to promoting green and sustainable initiatives.

Hydrogen energy is considered a clean and renewable energy source. In a low-inflation environment, there may be increased support and incentives for the adoption and development of green technologies. This can create a favorable market environment for hydrogen energy companies.

See Also: Short Interest Sector Focus: Industrials Sector

What Happened With Inflation Data?

In May, inflation exhibited a greater deceleration than anticipated, leading investors to grow more optimistic about the potential conclusion of Federal Reserve rate increases.

According to data released by the Bureau of Labor Statistics on Tuesday, the U.S. consumer price index (CPI) recorded a 4% year-on-year increase in May, compared to 4.9% in April.

This figure slightly undershot the average economist expectation of 4.1% and represents the lowest inflation reading since March 2021...Read More

According to data from Benzinga Pro, PLUG has a 52-week high of $31.56 and a 52-week low of $7.39.