A Stock-Market Safe Haven Seen as ‘Canary in Coal Mine’ for Risk

Treasury yields have risen and the Federal Reserve may increase interest rates, which could pressure utility stocks. Utilities historically served as a stable sector for stock market investors but have become more volatile as investors shift capital toward artificial intelligence-related stocks. Higher interest rates typically reduce the appeal of utility stocks because they make bonds and other fixed-income investments more attractive relative to dividend-paying equities.

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