Utilities are having their best rally in decades , propelled by artificial intelligence enthusiasm and the prospect of lower interest rates, but some investors are cooling on the sector.
Rate-sensitive utilities are now the best-performing sector in the S & P 500 in 2024, jumping more than 28%.
The sector is on pace for its best year since 2000, when it climbed more than 50%.
XLU XLK,.SPX YTD mountain Utilities versus tech and the S & P 500 in 2024 Utilities are viewed as an outsized beneficiary of lower borrowing costs due to their high capital requirements.
For the time being, investors are still flocking to the names: Vistra and Constellation hit fresh all-time highs on Thursday.
Persons:
XLU XLK, Jason Goepfert, Kathryn Rooney Vera
Organizations:
Vistra Corp, Constellation Energy