The sector's recent underperformance was largely driven by aggressive bets on impending rate hikes, which historically pressure high-dividend utility stocks. As those market pressures moderated, investors moved back into the space. PG&E saw the most significant movement, with shares jumping 4.7% as concerns regarding the California utility’s potential wildfire liabilities briefly settled. The move highlights how sensitive the industry remains to both macroeconomic policy shifts and regional operational risks.
In section Market Quotes
Utilities Rally as Market Fears Recede
A cooling in interest rate expectations and a temporary ease in wildfire-related anxiety pushed power producers higher on Thursday. The SPDR Select Sector Utilities ETF climbed 0.8%, marking a sharp reversal for a sector that has trailed the broader S&P 500 throughout recent weeks of market volatility.
Comments (0)
No comments yet. Be the first!