Utilities Down as Fed's Powell Voices Rate-Cut Doubts -- Utilities Roundup

Shares of power producers declined as traders braced for a shift in Federal Reserve rate-cutting plans.

Fed Chairman Jerome Powell warned that recent data could force a reconsideration of the central bank's policy intentions. In recent weeks, the odds of a rate cut in June have fallen significantly, and strategists are now questioning whether any rate cuts will occur in 2024 at all.

"I was always in the camp we may see one or two [rate cuts]," said Joe Rinaldi, president and chief investment officer at wealth manager Quantum Financial Advisors. "Most likely you'll see one right before the election around September ... I think we'll see a choppy market from May through September."

 Write to Rob Curran at [e-mail] 

(END) Dow Jones Newswires

04-16-24 1815ET