According to a recent CNBC report, market commentator Katie Stockton warned that the utilities sector, which has been heavily impacted by rising interest rates, is now in a deeply oversold state. Stockton said this condition raises the possibility of a short‑term relief rally in the coming weeks.
Stockton’s observation comes amid a broader market environment where higher rates have pressured a number of utility stocks. The sector’s current valuation metrics suggest it may be due for a rebound, according to her assessment.
“The deeply oversold condition of the utilities sector increases the likelihood of a short‑term relief rally over the coming weeks,” said Stockton.
Investors watching the utilities space should note that any recovery would likely be temporary, reflecting the sector’s sensitivity to changes in borrowing costs and overall market sentiment.
<small>Source: CNBC — read the original story there.</small>