Shares of Enphase Energy Inc (NASDAQ: ENPH) are trading lower. Weakness in the stock may be related to a pullback in oil prices, which could lower demand for alternative energy names. Solar and alternative energy stocks previously surged amid the start of the Russia-Ukraine conflict due to high oil prices and calls for energy independence.
The weakness also comes amid a dip in the overall market in anticipation of expected Fed rate hikes this year as the Fed seeks to curb inflation.
A more aggressive rate hike approach to curb inflation could weigh on growth stocks. The 10-year U.S. Treasury yield is again hovering around a new two-year high, which has pressured valuations in 2022. The 10-year Treasury yield hit an intraday high of 2.784% Monday morning before dipping to around the 2.700% level. When interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.
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Enphase Energy is trading lower by 4.08% at $187.18. Enphase Energy has a 52-week high of $282.46 and a 52-week low of $108.88.
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