Shares of power producers fell sharply as traders weighed the implications of higher oil prices for inflation and interest rates.
Futures markets began pricing in a rate hike in 2026 with near certainty following reports that Iran had ceased engaging in talks with the U.S. due to Israeli incursions in Lebanon.
The SPDR Select Sector Utilities exchange-traded fund, which had been one of the stock market leaders during the Fed's rate-cut cycle, fell 2.7%.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
