A heat wave is set to sweep across several regions of the United States as 2024 shapes up to be one of the hottest years on record.

The Forecast: Nearly 150 million Americans are under heat warnings or watches on Thursday, per the National Weather Service.

According to Axios, temperatures will exceed 110 degrees in several areas of the country until Aug. 7 - Texas, Oklahoma, Nebraska, Kansas, North and South Dakota, Eastern Washington, inland California and Western Missouri.

There are also excessive heat warnings in regions of Oregon, Montana, Arkansas, Illinois, Mississippi and Tennessee.

The ongoing Park Fire in California is the fifth-largest forest fire in the state's history. The fire's origin is attributed to extreme heat and dry weather conditions.

The scorching hot temperatures are not just a public health risk. It will also affect several companies with operations in the U.S.

Market Implications: The earth's rising temperatures have dramatically affected the energy industry, as heat causes outages and operational strain. The use of electricity tends to go up - along with prices - during heat waves as residents stay inside and use air conditioning. Here are a few companies that will invariably be affected:

  • Black Hills Corp (BKH  ) is a large utility company operating in Nebraska, Kansas and Arkansas - three of the most affected states this week.
  • OGE Energy Corp (OGE  ) is the largest utilities provider in Oklahoma.
  • Evergy Inc (EVRG  ) is the largest electricity provider in Kansas.
  • PG&E Corp (PCG  ) operates in California and has taken several wildfire-related losses in the past decade.
Home improvement retailers Lowe's Companies Inc (LOW  ) and Home Depot Inc (HD  ) may see increased demand for air conditioning units. Walmart Inc (WMT  ) also sells air conditioners.

Generac Holdings Inc (GNRC  ) manufactures generators. Home and industrial generators typically see increased demand following extreme weather events.

The heatwave will also affect the agriculture and food industries:

  • Meat producer Tyson Foods Inc (TSN  ) has operational centers in several affected states.
  • There may be an increase in demand for irrigation equipment and heat-resistant machinery manufactured by Deere & Co (DE  ) and Agco Corp (AGCO  )
  • Corteva Inc (CTVA  ) sells crop protection products that help farmers manage drought-induced crop loss.