Shares of power producers rose as traders rotated back into a sector that sold off heavily during the period of rising inflation, spurred by a slowing rate of consumer price increases.
The SPDR Select Sector Utilities exchange-traded fund, which tracks the utilities industry group of the S&P 500, is down 11% for the year to date, but has risen by a similar increment since its lows in October.
The conventional market wisdowm has shifted from an expectation that the Federal Reserve would raise rates on at least one more occasion to an anticipation of rate cuts in the relatively near future.
Those expectations were bolstered by Thursday’s personal consumption expenditure index of consumer inflation.
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