Utilities stocks face a big rate test next week after XLU slips — what to watch

U.S. utility shares wrapped up January under pressure, with interest rates regaining influence ahead of Monday’s open. The Utilities Select Sector SPDR Fund slipped 0.18% to close at $43.25 Friday. The Utilities Select Sector Index dropped 0.21%, though it still posted a 1.32% gain for the month.

Utilities Stocks in Focus: Fed Minutes, Treasury Yields, Winter Storm Risk—and the AI Power Boom Ahead of Monday’s Open

Utilities Stocks in Focus: Fed Minutes, Treasury Yields, Winter Storm Risk—and the AI Power Boom Ahead of Monday’s Open

Utilities stocks are heading into the final full trading week of 2025 with two narratives pulling the sector in different directions: the traditional “bond proxy” role that can rise or fall with interest-rate expectations, and a fast-evolving growth story tied to electrification and surging power demand from AI-driven data centers.