Shares of power producers fell as traders rotated into more cyclical sectors.
One analyst said the utility sector has bounced back recently due to a retreat of Treasury yields from their peaks earlier in the second quarter.
"The extreme relative underperformance versus the rest of the market four or five weeks ago coincided with the relative peak of the 10-year Treasury yield," said Alex Kania, analyst at brokerage BTIG.
"The fact that has rolled over a little bit has been helpful for utility valuations." Kania said a recent selloff in the energy sector may have benefitted utilities. "With oil prices rolling over a little bit, there's been a migration a little bit away from conventional energy names."
Kania said investors will continue to look to the sector because of its reputation as providing less risky exposure to the artificial-intelligence boom.
