Shares of power producers fell as traders rotated into cyclical sectors, emboldened by the u.S.-China trade deal.
Shares of Houston electricity producer NRG Energy rallied by more than 25% after it agreed to acquire rival LS Power's portfolio of natural-gas generation facilities and power-plant platforms in a cash-and-stock deal with an enterprise value of about $12 billion.
Up until Friday, the utilities industry group was the biggest gainer of the 11 on the S&P 500 because investors fearful of a recession had bought into the defensive sector.
"Perhaps today's rally is the beginning of a normalization where we see some of the more cyclical things respond to that outlook," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
05-12-25 1735ET
