Investors entered 2026 expecting multiple Federal Reserve rate cuts, but strong May jobs growth and persistent inflation have erased those expectations. The CME FedWatch Tool now shows about a 70% chance of a rate hike by December, marking a sharp reversal in market sentiment. This shift impacts rate-sensitive sectors like utilities, REITs, and semiconductors, which are adjusting to higher borrowing costs. Going forward, every jobs and inflation report will influence Fed policy expectations, with no rate cuts expected soon and the possibility of hikes increasing if data remains strong.
The State Street Utilities Select Sector SPDR ETF (XLU) provides investors with passive exposure to regulated utilities, focusing on about 30 S&P 500 utility companies. It charges a low expense ratio of 0.08%, avoids leverage and active management ri...
Fred Piard's analysis of the utilities sector finds gas utilities near historical value and quality baselines, while water utilities are undervalued by 21%. In contrast, electricity and multi-utilities are currently overvalued by 14%. The Fidelity MS...
