Utilities outpaced the market in October as Exelon led gainers and NRG lagged

what happened

According to Seeking Alpha, the utilities sector gained 10.12% in October, while the S&P 500 slipped 0.94%. Its analyst Gerard linked the outperformance mainly to falling long-dated Treasury yields. Investors moved into defensive assets as AI and tech shares sold off, and the 10-year yield dropped about 29 basis points to roughly 5%.

Regulated electric and water utilities dominated the leaderboard: all five top gainers belong to that group, while the three laggards were merchant power or AI-linked names. Exelon climbed 14.07% after beating EPS expectations and narrowing its 2026 adjusted EPS guidance to $2.85-$2.91. WEC Energy rose 14.05% on third-quarter results, helped by its Wisconsin unit. CenterPoint gained 13.76% after lifting full-year guidance and expanding its capital plan.

NRG Energy was the weakest, down 1.84%, after falling on October 14 together with Vistra and Constellation Energy over doubts about CoreWeave's debt and the durability of AI-driven power demand. Vistra ended the month 1.82% lower, and AES fell 0.37%, a move Gerard tied to a pending buyout by a group headed by Global Infrastructure Partners and EQT, which won EU antitrust clearance during the month.

why it matters

For traders, the month showed a split inside the sector. Regulated companies with predictable cash flows and dividends tend to benefit when bond yields fall, while generators tied to AI power demand stay sensitive to shifts in sentiment. Deal-driven stocks such as AES trade more on takeover milestones than on the broader market.

market impact

US utilities: falling bond yields favour regulated dividend payers over AI-linked power generators.

• ▲US utilities pressure up — falling Treasury yields make steady dividend payers more attractive

instruments