Why Sunrun Stock Is Seeing Blue Skies

Sunrun Inc RUN shares are trading higher by 20.39% to $18.01 during Thursday's session. Shares of several companies in the broader industrial sector are trading higher amid overall market strength after the Fed left rates unchanged, with most Fed officials seeing rate cuts in 2024-2026.

Sunrun relies on external financing for its operations, including installations of solar panels and related infrastructure. When interest rates are low or are expected to remain low, it becomes cheaper for Sunrun to borrow money.

Lower interest rates mean the company can access capital at more favorable rates, reducing its cost of financing and potentially improving profitability.

What Else?

Clean energy stocks may also be getting a lift following COP28 climate summit, which resulted in commitments to shift away from fossil fuels. 

What Happened With The Fed?

The Federal Reserve opted to retain the federal funds rate between 5.25% and 5.5%, signaling a potential conclusion to the series of rate increases initiated in March 2022.

Although acknowledging a recent decline in inflation, the Fed remains vigilant due to its persistent elevation, emphasizing a commitment to returning it to the 2% target.

Moreover, the Fed reiterated its reliance on incoming data to inform and guide future policy decisions...Read More

See Also: Adobe Stock Is Falling Thursday: What's Going On?

According to data from Benzinga Pro, Sunrun has a 52-week high of $33.19 and a 52-week low of $8.43.