Solar stocks jump as Senator Joe Manchin reaches a deal with Democrats that includes climate spending

The news that Senator Joe Manchin and Majority Leader Chuck Schumer reached a deal on a spending bill that includes climate funds boosted solar stocks.

The agreement aims to cut US carbon emissions by 40% by the year 2030. Manchin previously said that he wouldn't support a bill with new taxes.

First Solar, SolarEdge, and SunRun all saw their shares increase in value.

The bill still faces stiff opposition from Republicans and could be derailed by Democrats voting outside of party lines and still needs to pass both chambers of congress. The previous versions had a climate provision of $6 billion.

Manchin had agreed to keep intact a Medicare provision. Medicare will be able to negotiate the costs of expensive prescription drugs. Medicare Part D plans to cap costs for seniors at $2,000 a year would be changed.