HomeMarket NewsInvestors Cheer as Utility Companies Surge Amid Plummeting Treasury Yields

Investors Cheer as Utility Companies Surge Amid Plummeting Treasury Yields

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It was a day of jubilation for investors as utility company shares surged on Wednesday. The catalyst? Long-dated U.S. Treasury yields plummeted to their lowest point in three months following a report revealing that private sector job growth had fallen short of expectations.

The recent slide in long-dated Treasury yields has been fueled by optimism over a sluggish labor market and moderating inflation, potentially paving the way for the Federal Reserve to initiate interest rate cuts next year.

The yield on the 10-year Treasury note sank by five basis points on Wednesday to 4.12%, while the 30-year Treasury yield dropped by eight basis points to 4.22%, marking the lowest levels for both rates since August 31, as reported by Dow Jones.

The SPDR Select Sector Utilities ETF (NYSEARCA:XLU) emerged as the top performer among the S&P sectors, soaring by 1.3% and paring its year-to-date loss to under 10% after a remarkable climb of around 12% from its lows in October.

Leading the charge were notable gainers such as NextEra Energy (NEE) with a 3.4% surge, Sempra (SRE) leaping by 3%, Exelon (EXC) up by 2.3%, Dominion Energy (D) gaining 2%, Southern Co. (SO) increasing by 1.8%, Pinnacle West (PNW) and Ameren (AEE) both rising by 1.8%, as well as Alliant Energy (LNT), Duke Energy (DUK), and Xcel Energy (XEL) all posting gains ranging from 1.5% to 1.7%.

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