S&P 500 Utilities Slide to a Three-Month Low
The S&P 500 utilities sector slipped 0.6% today, marking its lowest level in three months and signaling renewed pressure on traditionally defensive stocks. Utilities often struggle when bond yields stay elevated, and today’s move reflects investors continuing to rotate away from yield-sensitive sectors as rates remain firm.
With Treasury yields holding near recent highs, the appeal of utility dividends weakens compared to risk-free returns, pushing capital toward other parts of the market. This decline also suggests that investors are not positioning defensively yet, despite ongoing macro uncertainty.
If yields remain sticky or move higher, utilities could stay under pressure in the near term. A meaningful rebound may depend on clearer signals of rate cuts or a broader shift back toward risk-off positioning.