New York, Jan 25, 2026, 13:44 EST — Market closed.
U.S. utility stocks closed the week weaker, with the Utilities Select Sector SPDR Fund (XLU) slipping 0.35% on Friday to $42.56. The ETF dropped roughly 1.1% over the past two days, marking a modest pullback ahead of a week loaded with weather and policy developments.
Timing plays a key role since utilities often behave like income-heavy “bond proxies”—meaning the sector tends to track Treasury yields. On Friday, the 10-year U.S. Treasury yield fell to 4.231%, while fed funds futures showed a 97% probability the Federal Reserve will keep rates unchanged at its upcoming meeting. Reuters
Over the weekend, attention quickly turned to the power grid. PJM Interconnection, the largest regional grid in the U.S., saw spot wholesale electricity prices briefly surge past $3,000 per megawatt hour on Saturday. It also raised its demand forecast for Tuesday to a record 147.2 gigawatts. “A 40-year-old gas turbine switches on because it sees these super-high prices,” said Georg Rute, CEO of grid software company Gridraven, in a Reuters interview. Reuters
Outages have spread widely. Over 850,000 U.S. customers were still without power Sunday morning, according to PowerOutage.us. The Department of Energy stepped in over the weekend, issuing emergency orders for Texas’ ERCOT grid and directing PJM to activate specific resources. Dominion Energy warned the ice forecast could turn this into one of its biggest winter events.
Duke Energy, a major regulated utility in the Carolinas, reported having over 18,000 workers from 27 states and Canada prepped for deployment. Ice poses the biggest challenge, the company said. “Freezing rain is going to be our enemy over the days ahead,” storm director Rick Canavan noted in an update. Duke Energy | News Center
The company’s charitable arm wasn’t waiting for the cold snap. “Duke Energy’s storm response goes beyond restoring power,” said Duke Energy Foundation president Loree Elswick, as the foundation announced a $100,000 rapid-response grant to the American Red Cross. Allison Taylor, a Red Cross regional executive, noted the funds help communities “open shelters” and provide supplies during prolonged cold. Duke Energy | News Center
Friday’s final trades showed a mixed bag among sector leaders: NextEra Energy edged down roughly 0.3% to $84.81, Duke Energy slipped 0.2% to $117.43, while Dominion Energy dropped about 0.6% to $59.60.
That said, the situation isn’t one-sided. Should the storm’s impact stay limited and power grids recover swiftly, utilities might dodge costly repairs and see wholesale prices ease. The larger threat, though, lies in rates: a firm Fed stance or a fresh jump in long-term yields could undercut appetite for dividend stocks, even if the wider market holds steady.
U.S. markets will reopen Monday. All eyes turn to the Federal Reserve’s two-day meeting set for Jan. 27–28. The rate decision drops at 2:00 p.m. ET on Jan. 28, with the press conference to follow at 2:30 p.m. Traders are also watching outage restoration efforts and early-week power demand closely.
