Utility stocks exceed the S&P 500 with “No recession signs” in the demand for energy

Service stocks have passed the S&P 500 (^Gspc) year to date as energy demand increases even as Fare uncertainty raises questions about a recession.

S&P 500 utilities select ETF (Xlu) It has increased by 6% compared to a fall of almost 4% of the large base index, a 6% fall fall (Xlk), and a decrease almost 10% in the consumer’s discretion (XLC) Stocks.

Although public services actions fell along with the rest of the market after the announcement of President Trump’s policy on April 2, his fall was not as severe as in other sectors.

“In general, public services seem to be minimally affected by rates,” CFRA analyst, Daniel Rich, told Yahoo Finance. “The vast majority of the capital investment budgets of public service companies are based on the work, materials and energy of the United States.”

Passing the sector is based on a gain of approximately 23% by 2024 as a data center growth from an artificial intelligence boom and efforts to the manufacture of the land driven by the demand for augmented electricity.

This demand is strong despite recession fears arising from the world trade war.

“There are no recession signs in the demand for power,” said Goldman Sachs analysts on Tuesday night. “Year to date, U.S. energy demand has increased by 5.5% year -on -year and the average annual growth rate of 0.6% in the last decade.”

Analysts said that all sectors of energy demand have contributed to this growth, including the residence.

The administration of energy information wait The demand for electricity to grow faster in the industrial sector this year as new semiconductor and batteries manufacturing operations occur. Data Center energy consumption It is also expected to increase.

On Tuesday, the energy maintained by the giant Duke Energy (All) He announced that he signed chords for almost 1 Gigawatt of data center projects that involved two clients in April.

“We are projecting the burden of burden to levels that I have never seen in my 30-year career, which will promote more than a decade of record infrastructure,” said Analysts, Duke’s CEO, Harry Sideris, during the company’s earnings call, referring to increasing energy demand in the United States.

Duke Energy Stock has increased by 11% to date. His excelon companions (Excipie) and the southern company (So) They have also increased by almost 20% and 10%, respectively.

Wednesday, Google (Googo, Googl) announced a collaboration with Advanced Nuclear Project Developer Elementl Power, another Big Tech’s sign Appetite insatiable by electricity.

That follows A link In September between Microsoft (Msft) and energy of energy giant constellation (Branch) as well as Amazon (AmznThat) Purchase of a data center campus of the Energy Provider Talen Energy (Tln) March last.