Shares of power producers rose as the sector continued to ride upward momentum.

The SPDR Select Sector Utilities exchange-traded fund, which tracks the utilities sector of the S&P 500, is up more than 11% for the year to date, one of only three S&P 500 industry groups to sport double-digit returns.

It's something of a counterintuitive trend to see the utility sector thrive while interest rates are so elevated, due to their traditional role as an alternative to bonds.

Utilities are "considered the quintessential rate-sensitive sector," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management, meaning they usually lag the broad stock market when Treasury yields rise as they have during 2024.

"Because of AI because of EVs, and because of crypto mining...studies show we're going to need a lot more power than we currently have available," said Joyce, president of Houston financial advisory Joyce Wealth Management.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

06-17-24 1711ET