BUI - Utilities tumble into the red after Fed policy update

Gargolas/iStock via Getty Images Shares of power producers ([[XLU]] -1.5%) sank across the board today as the Federal Reserve flagged an earlier than planned interest rate increase. The yield on benchmark 10-year U.S. Treasurys surged by the most since February to 1.57% from a near three-month low, and the two-year yield briefly climbed above 20 basis points for the first time in a year. The news sent utilities stocks swimming in a sea of red, including [[PCG]] -2.8%, [[AEE]] -2.6%, [[ES]] -2.1%, [[PNW]] -2.1%, [[PPL]] -2.1%. [[D]], [[SO]], [[SRE]], [[EXC]], [[ED]], [[XEL]] and [[LNT]] all finished ~2% lower. NextEra Energy (NEE) had been positive all day before edging lower, closing -0.2%. ETFs: [[XLU]], [[UTG]], [[VPU]], [[BUI]], [[GUT]], [[FUTY]], [[IDU]] The shift toward clean energy "may create bullish and bearish factors which utility firms must navigate carefully in a changing world," Harrison Schwartz writes in analysis posted recently on Seeking Alpha.

For further details see:

Utilities tumble into the red after Fed policy update