Shares of power producers fell as Treasury yields rose in the wake of President Trump's comments on the ceasefire with Iran.
The yield on the two-year Treasury closed at the second highest level of the year after minutes from the Federal Reserve's meeting revealed the majority of officials believed a rate hike would be necessary this year if inflation remained elevated.
"The most likely scenario was in the context of a stable labor market, inflation would have upside risk due to strong AI-related demand, continued Middle East conflict, and lingering tariff effects. Under this scenario, the majority indicated further tightening was warranted," said Jeffrey Roach, chief economist at brokerage LPL Financial, in a note to clients.
Utilities are particularly sensitive to shifts in Treasury markets because they are both heavily indebted and viewed by many savers as a bond alternative.
Write to Rob Curran at rob.curran@dowjones.com
