Shares of power producers rose sharply as traders sought out defensive sectors in light of fears about Federal Reserve policy.

There remain some logistical challenges for U.S. utilities making the transition to sustainable energy, said one brokerage. "1) energy storage and fuel cells present a greater-than-appreciated challenge for some utilities," said strategists at brokerage Morgan Stanley, in a note to clients.

Other concerns are "tremendous confusion around the use cases and overall market potential of clean hydrogen" and the fact that "physical risks of climate change are a real threat for utilities."


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

(END) Dow Jones Newswires

05-31-23 1745ET