Shares of Daqo New Energy (DQ) surged 9.8% on Tuesday, leading a broad rally in solar and clean energy stocks ahead of the Federal Reserve's interest rate decision. The surge in Daqo's stock was fueled by expectations that the central bank could cut interest rates, potentially boosting demand for solar installations.

Lower interest rates are seen as a key factor in driving consumer adoption of solar energy systems. Many households need to finance the upfront costs of solar installations, and a reduction in borrowing costs can make solar energy more affordable and attractive.

As investors increasingly anticipate a 50 basis point rate cut by the Fed, solar stocks across the board rallied in anticipation of increased demand. Enphase Energy (ENPH), a leading solar technology company, closed as the biggest gainer on the S&P 500, rising 6.3%.