Investors considering electric vehicle (EV) stocks right now appear to have the green light from the market. Among bullish investor interest in this sector, shares of Arrival (NASDAQ:ARVL), FuelCell (NASDAQ:FCEL), EVgo (NASDAQ:EVGO), Canoo (NASDAQ:GOEV), ChargePoint (NYSE:CHPT) and Fisker (NYSE:FSR) are all up meaningfully today. These EV-related stocks have all shown strength on a day that has been relatively flat throughout.
The moves these EV stocks have seen cap off a few days of strong momentum for these stocks.
Indeed, growth stocks have been hit hard of late. Accordingly, those looking at the growth various EV stocks provide have felt the pressure of the markets in recent weeks. Everything from inflation-related concerns to a debt ceiling crisis (that was narrowly avoided last week) have sent this sector on a rollercoaster ride.
However, sentiment appears to once again be looking up for this sector. Let’s dive into a few reasons why EV stocks are seeing momentum today.
EV Stocks Higher on a Range of Catalysts
As mentioned, the resolution of the impending catastrophe the debt ceiling brought this past week has boosted all growth stocks. With this headwind out of the way, investors appear willing to focus on the longer-term growth these companies can provide.
Additionally, a bad-news-is-good-news outcome appears to be at play with the recent jobs numbers reported for September. With only 194,000 jobs created in September (versus estimates of 500,000), investors are pricing in a lower likelihood of tapering in the near term. Accordingly, for hypergrowth stocks, this is a very good thing.
Higher bond yields in recent days suggest bond investors see fit to allocate more capital toward equities. A previous decline in bond yields ahead of the debt ceiling fiasco (generally a good thing for growth sectors and EV stocks) suggested investors may be growing more bearish on the near-term economic outlook from here.
Thus, it appears the market is finding an equilibrium right now. For investors looking at EV stocks, or stocks in any high-growth sector, this is a good thing.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.