NEW YORK, Feb 8, 2026, 14:11 EST — Market closed
- Utilities Select Sector SPDR ETF (XLU) tacked on 0.6% Friday, lagging behind the sharper rally seen across Wall Street.
- Investors are on alert for the delayed U.S. jobs report due Wednesday, with CPI inflation numbers following Friday—both could shake up bond yields.
- Feb. 10 brings Duke Energy’s quarterly results—one of the sector’s upcoming tests.
Utilities shares in the U.S. managed a modest climb Friday. The Utilities Select Sector SPDR ETF finished the session at $43.35, gaining 0.58%.
Wall Street bounced hard after tech’s recent slide. The S&P 500 shot up 1.97% and the Dow closed above 50,000 for the first time, adding 2.47%. Treasuries were unsettled: the two-year yield climbed to 3.496%, but the 10-year pulled back to 4.206%. “The market looks like it was getting a bit overdone to the downside,” said Robert Pavlik, senior portfolio manager at Dakota Wealth. Reuters
That’s a big deal for utilities, which often move in step with rate outlooks as much as their own profit reports. This week, investors are watching for the delayed U.S. nonfarm payrolls numbers landing Wednesday and CPI on Friday—both key data points. Economists tracked by Reuters are looking for payrolls to add roughly 70,000 jobs. “Rotation is the dominant theme this year,” said Angelo Kourkafas, senior global investment strategist at Edward Jones. Investors are trying to gauge whether the Fed’s first rate cut comes as early as June. Reuters
Utilities often pick up the “bond-proxy” label thanks to dividend payouts that rival bond yields. But once Treasury yields start climbing, the sector’s appeal tends to fade quickly.
Policy chatter lingered through the weekend. Treasury Secretary Scott Bessent signaled the Federal Reserve isn’t rushing into balance sheet adjustments—he suggested it might need as long as a year to figure out its strategy, even with Kevin Warsh as the Fed chair nominee.
The sector saw a split tape Friday. NextEra Energy added 0.24%. Duke Energy lost 1.25%, and Southern Co dipped 1.11%. All this even as the broader market headed higher.
This kind of divide isn’t new for utilities—earnings and fresh guidance often overshadow broader market swings. You’ll see one player touting strong customer demand and tight capex controls. Right next to it, a peer might stumble on rate-case jitters or rising funding costs.
Duke Energy will release its quarterly numbers Tuesday, Feb. 10, with management set to discuss the results on a call that same morning, per the company’s investor site.
The Labor Department has scheduled the January CPI drop for Friday, Feb. 13, with the numbers hitting at 8:30 a.m. ET.
But that setup has risks on both sides. A jump in inflation, or a surprisingly strong jobs report, could drive yields higher and put utilities back on the losing end—particularly if investors rotate into cyclicals instead of defensives.
Utilities traders are staring down a tight cluster of key dates: Duke reports on Feb. 10, then the postponed jobs numbers land Feb. 11, with CPI rounding out the trio on Feb. 13. By Friday morning, the sector should either have a sharper sense of the rate picture—or just fresh ammunition for the next debate.
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