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6.5%

The total return of the S&P 500 utilities sector index quarter-to-date through last Friday, ahead of the broad index’s 3.79% total return. The traditionally defensive sector has benefitted from lower bond yields making the relatively high dividend yields of most utility stocks more appealing. Additionally, enthusiasm surrounding the prospects of increased demand for electricity driven by generative AI-focused data centers has also boosted an increasing share of utility stocks for most of the last eight weeks.

48%

The upper range of additional tariffs levied by the European Union (EU) last week on imports of Chinese electric vehicles (EVs) into the single-currency bloc. Led by BYD, Geely Automobile and SAIC Motor, China’s largest EV makers have made an aggressive push into the European auto market. The lobby group Transport & Environment estimates 25% of all battery EVs sold in the EU in 2024 will be made in China, up from 20% last year.