Daqo New Energy (DQ) saw its stock price soar 6.83% during intraday trading on Thursday, as part of a broader rally in solar stocks. The surge came after a significant development in a U.S. tax-and-spending bill that proved favorable for the renewable energy sector.

The rally was triggered by news that legislators had removed a last-minute excise tax on renewable energy projects from President Donald Trump's tax-and-spending bill. This tax was originally intended to penalize projects that sourced components from "prohibited foreign entities" such as China after 2027. The removal of this provision was seen as a positive development for solar companies, including Chinese manufacturers like Daqo New Energy.

Other solar stocks also experienced significant gains, with Sunrun leading the pack with an 18.6% increase, followed by SolarEdge at 10.7%, First Solar at 8%, and Enphase Energy at 7%. The bill's narrow passage in the Senate and its pending vote in the House of Representatives have created a sense of optimism in the renewable energy sector, despite some legislators expressing concerns over certain aspects of the bill. Investors appear to be betting on a favorable outcome that could boost the solar industry's growth prospects in the United States.