HomeMarket NewsUtilities slide again as 10-year Treasury closes at highest level since 2007

Utilities slide again as 10-year Treasury closes at highest level since 2007

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Shares of power producers (NYSEARCA:XLU) experienced significant declines on Wednesday due to the rise in U.S. Treasury yields, reducing demand for dividend-focused utility stocks.

The 10-year Treasury note yield closed at 4.625%, its highest level since 2007.

The S&P 500 Utilities Index closed 1.9% lower after hitting its lowest point of the day since March 2021. Over the past five sessions, the index has dropped by 6%.

Leading the losses on the index, NextEra Energy (NYSE:NEE) plunged 8.2% on Wednesday. This decline followed NextEra Energy Partners’ (NEP) reduced forecast for full-year run-rate adjusted EBITDA and growth-rate expectations for limited partner distributions.

On Tuesday, NextEra Energy (NEE) announced the sale of its Florida City Gas utility to Chesapeake Utilities for $923M in cash.

Other notable decliners in Wednesday’s trading included American Water Works (AWK) (-2.5%), NiSource (NI) (-2.2%), DTE Energy (DTE) (-1.6%), Eversource Energy (ES) (-1.5%), Southern Co. (SO) (-1.4%), Alliant Energy (LNT) (-1.4%), Consolidated Edison (ED) (-1.3%), PPL Corp. (PPL) (-1.3%), Wisconsin Energy (WEC) (-1.3%), and Dominion Energy (D) (-1.3%).

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