Donald Trump’s unexpected win over rival presidential candidate Hillary Clinton brought about swift and dramatic reactions in energy stock prices.
Shares of renewable energy companies such as solar and wind power providers were battered by investors who fear the new president will cut back or eliminate clean energy subsidies.
Shares of coal companies, on the other hand, got a boost from the prospects of the Trump presidency, riding on the candidate’s promises to bring back coal jobs.
Solar companies such as SolarCity, Vivint Solar and SunRun took a beating in the market in the wake of the election results, Market Watch reported.
Solar panel makers, such as SunPower and First Solar, were also hit as investors reacted to the uncertainty surrounding the new administration.
After the initial declines renewable shares regained some lost ground, but concerns linger among investors concerned about what policies the Trump Administration might put in place. Those investors had to look no further than an Oct. 31 policy statement by Trump in which he pledged to “cancel all wasteful climate change spending.”
But as some commentators have pointed out, renewables such as wind power, can enjoy support across party lines. In an August interview with Yahoo News, Sen. Charles Grassley (R-Iowa) said he would protect the wind tax credit.
Coal stocks, such as bankrupt Peabody Energy, however, saw shares rise by 50%.
"A Trump victory will bring hope and positive attention to the coal industry and the tremendous benefit its continued and increased use means to a secure America, with more of our professional miners and supporting businesses working and active," West Virginia Coal Association President Bill Raney told SNL Financial.