Shares of power producers rose as traders rotated into defensive sectors, reversing a rush into cyclical areas earlier in the week.
Optimism about a resolution to the Iran conflict had driven the rotation out of utilities, said Alex Kania, a utilities analyst at brokerage BTIG.
Earnings calls from major utilities revealed more ramped-up capital-expenditure plans to meet rising data-center demand, Kania said.
"Large load is still dominating [the agenda]," said Kania. "The investor tone in the Q&A this quarter is: 'all that's great, obviously, but how do you feel about supply chains? Generation orders?'...the mood right now is: 'great that we're seeing enhanced capital plans,' but investor focus begin to shift towards execution."
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
05-07-26 1732ET
