Shares of power producers rose as traders sought out the defensive sector following gloomy economic data.
Utilities’ business is perceived as “evergreen” as corporations and consumers will keep the lights on no matter what economic conditions prevail.
There are signs that the U.S. economy is facing the simultaneous onslaught of inflation and recession, a particularly feared scenario because the return of inflation would prevent the Federal Reserve from stepping in to rescue the jobs market with rate cuts.
A recent decline in Treasury yields has also bolstered the attractiveness of yield-oriented utilities.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
March 28, 2025 17:16 ET (21:16 GMT)
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