U.S. solar stocks tumbled on Tuesday after a Senate panel proposed phasing out solar and wind tax credits by 2028, as part of changes to President Donald Trump's sweeping tax-and-spending bill. Solar inverter maker Enphase Energy and solar panel manufacturer First Solar slid 27.

While the Senate’s proposal eventually removes credits provided by the Inflation Reduction Act enacted under the Biden administration, analysts at J.P. Morgan and Mizuho said the Senate version is better for solar and other renewables stocks than the one passed by the House of Representatives in late May.