AI Mania Risks Spoiling a Classic Haven as Utility Yields Crash

The artificial intelligence trade that has driven the S&P 500 Index to one record after another over the past few years is transforming traditionally sleepy utilities stocks into booming growth plays.

Since the end of 2023, the utilities sector is up about 43%, making it the third best-performing group in the S&P 500, behind only communications services and information technology. Those three also lead this year, with utilities gaining 20%. Prior to this run, the S&P 500 Utilities index, which has hit numerous all-time highs in the past few months alone, had never posted 20% gains in back-to-back ...