The Week

XLU.US rose 0.81% this week to close at $39.83, while the S&P 500 fell 0.27%, leaving the ETF ahead of the benchmark by about 1.08 percentage points. The week started with a dip: Monday slipped to an intraday low of 39.06 before closing at 39.25. Buying then stepped in, and Friday touched a weekly high of 40.205 before settling at 39.83. Weekly amplitude was 2.98%.

Sector News

Utilities were in focus around US power demand, data centres and nuclear deals. Amazon signed a 20-year power supply agreement with Constellation Energy for the Calvert Cliffs nuclear plant; Goldman Sachs called the deal an industry-wide positive. Reports also said the US government is preparing a roughly $4bn federal loan for Vistra to expand nuclear capacity. SocGen noted that utilities look cheap after rising yields de-rated the sector, and several names including Xcel Energy, Sempra, Vistra and Entergy outperformed peers on individual trading days.

The Week Ahead

The macro calendar leans toward US services data. On Monday 5 Oct, S&P Global services PMI final (prior 58.7) and ISM non-manufacturing PMI (prior 55.4, forecast 55) are due. Tuesday 6 Oct brings international trade figures (prior -88.6, forecast -102), and Wednesday 7 Oct has EIA weekly crude and Cushing inventory data. These releases tie into this week’s bond-yield swings and the valuation debate around utilities, so rate-sensitive sector flows are worth tracking.

In Short

Utilities managed to edge higher while the broader market slipped. The latest session’s fund flow snapshot shows large-lot money marginally net selling while medium and small orders are net buyers, so direction is split. Nuclear and data-centre supply agreements provide an upward narrative; rising yields and the resulting valuation pressure remain the counterweight. The next cue is whether services data and rate moves reinforce or ease this internal divide.

This article is generated by LongbridgeAI from market data, for information only and not investment advice.