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Utility stocks (NYSEARCA:XLU) are Friday's worst performing S&P sector, -2.8%, as investors sell fixed income vehicles with yields rising after much stronger than expected U.S. non-farm payrolls data raised fears that the Federal Reserve could keep hiking interest rates.
The U.S. economy added 517K new jobs in January, crushing expectations and marking the biggest increase in six months, while the unemployment rate slid to a 54-year low of 3.4%.
All 30 members of the S&P 500 Utilities Index are trading lower, including Eversource Energy (ES) -3.8%, Evergy (EVRG) -3.7%, Alliant Energy (LNT) -3.6%, Exelon (EXC) -3.5%, FirstEnergy (FE) -3.5%, Pinnacle West (PNW) -3.4%, Dominion Energy (D) -3.3%, Entergy (ETR) -3.2%, Sempra (SRE) -3.2%, American Electric Power (AEP) -3.1%.
FirstEnergy (FE) said Thursday it agreed to sell an additional 30% stake in its FirstEnergy Transmission business for $3.5B.