Utilities stocks have fallen due to the fastest rise in Treasury yields since 1994, which pressures their dividends and valuations. However, the sector benefits from strong, long-term AI-driven power demand as tech giants secure power deals for data centers, supporting future earnings growth. Despite short-term rate headwinds, valuations are now attractive, making this a potential buying opportunity. Options traders consider bullish strategies targeting a rebound to recent highs within the next two months.
Utilities Select Sector SPDR Fund (XLU) trades at USD 39.82 on Pluang as of Oct 02, 2026 23:06 WIB, near its 52-week low of USD 39.25. The fund shows a slight 1-day gain of 0.35%, with a market cap of $21.33 billion. Despite strong sell activity at 98%, the sector's valuation appears attractive for potential rebounds.
