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.
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.
