Utilities Fall on Concerns of Higher Yields
US utility stocks tumbled 2.5% on May 8 after Jamie Dimon, CEO of JPMorgan Chase, predicted that benchmark interest rates could reach 4% during an interview with Bloomberg. Utility stocks and Treasury yields generally trade inversely to each other. Utilities are already trading weak this year due to the strength in Treasury yields and a faster-than-expected interest rate hike pace from the Fed.