Shares of power producers fell, but not by as much as the broad market, as traders sought out evergreen sectors whose prospects are less damaged by a likely recession.
The sector's appeal as a safe haven is reflected by its performance year to date. The Utilities Select Sector SPDR exchange-traded fund, which tracks the utilities industry group of the S&P 500, has risen by more than 2%, in contrast to a more than 21% loss for the broad index.
A sharp increase in Treasury yields could crimp demand for the sector, however, as lower risk returns become available to dividend-oriented investors.
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(END) Dow Jones Newswires