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.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
09-22-22 1728ET
