Chip Stocks Outperform, FICO Slides, Solar Stocks Tank

Listen for comprehensive cross-platform coverage of the US market close as heard on Bloomberg Television, Bloomberg Radio, and YouTube with Romaine Bostick, Sonali Basak, Tim Stenovec and Emily Graffeo

On this episode of Stock Movers:

- Shares of semiconductor companies are rising on Tuesday, with the group outperforming as analysts expressed optimism about the cohort’s prospects. Among notable movers: Intel +6.2%, ON Semiconductor +4.9%, Micron +4.3%, Microchip +4%, NXP Semiconductors +2.9%, Applied Materials +2.9%, Texas Instruments +2.2%, Nvidia +0.8%. The Philadelphia Stock Exchange Semiconductor Index is up 2.1%, compared with a gain of 0.1% in the Nasdaq 100 Index

-Fair Isaac (EFX), better known as FICO, saw shares headed for its worst slide since March 2020, after federal regulators said government-sponsored mortgage entities Fannie Mae and Freddie Mac will be able to use a second firm when determining borrowers’ creditworthiness. Federal Housing Finance Agency Director Bill Pulte said in a post on X that Fannie and Freddie will now allow lenders to accept the Vantage 4.0 credit model to “increase competition” in the credit score ecosystem. Pulte said the move should expand credit access to millions of potential borrowers living in rural areas and bring down closing costs. Since joining the FHFA, Pulte has pledged to do “a full scale review” of all credit bureaus. He also suggested that FICO should focus on being more economical in their pricing.

- Shares of US solar companies fell after President Donald Trump called for new rules that would limit access to tax incentives for renewable energy projects that had already been pared back by a $3.4 trillion budget bill. Sunrun Inc., the biggest US residential solar company, slid as much as 13%. Solar equipment provider Nextracker Inc. dropped as much 5.6%. First Solar Inc., a domestic solar manufacturer, fell as much as 5.3%.On Monday evening, Trump issued an executive order directing the US Treasury Department to more strictly define when a project has started construction, including restricting the use of efforts to lock in tax credits unless a substantial portion has been built.

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