Utilities Rally as Geopolitical Tensions Ease

For weeks, utility stocks struggled under the weight of a 30-year Treasury bond yield that breached the 5% threshold. Investors had braced for aggressive rate hikes, fearing that a protracted conflict would ignite inflationary pressures across the energy sector. The prospect of a diplomatic resolution has now provided a reprieve, tempering those hawkish expectations and restoring confidence in utility equities as a stable asset class.