Tel Aviv Stock Exchange falls, renewable energy stocks surge after US Democratic midterm win

The Tel Aviv Stock Exchange opened with declines in major indices after Democrats won the US midterm elections, while renewable energy stocks surged on expectations of increased government support.

Renewable energy company stocks in Tel Aviv are surging following the Democratic victory in the US midterm elections, which secured a majority in the House of Representatives and the Senate. Enlight jumps about 7%, and Doral rises by a similar rate, partly due to the connection of the "Indiana South" project to the grid. Analyst Lior Vider from "Multiplier Profit" says the election results provide "significant and immediate tailwind" for the sector, removing a regulatory cloud over Enlight. In contrast, Roy Shavit from IBI is more reserved, noting that President Trump still holds veto power that could prevent the reinstatement of canceled tax benefits. However, he notes that the risk of further deterioration has decreased. The article also notes a decline in US government bond yields as a supporting factor.