New York, NY – As we approach April, experts suggest that it may be the best month of the year for utilities. Utility stocks have outperformed tech stocks in March, with the S&P 500 showing a 3.2% increase compared to 2.8%. Looking back over the past 20 years, April has consistently been a strong month for utility stocks, according to Jonathan Krinsky, chief market technician at BTIG. Despite rising interest rates, utilities have been performing well and seem poised for further growth, coming out of a multi-month base.
Krinsky highlights the Utilities Select Sector SPDR Fund as a potential bearish-to-bullish reversal candidate, noting that it typically sees an average monthly gain of 2.15% every April over the last two decades. The recent performance of S&P 500 Utilities supports this trend, showing a 4.7% increase over the past month.
In other market news, all three major averages achieved record closing highs for the second consecutive session. As the week comes to a close, investors are keeping an eye on Friday’s trading session to see how the major averages will fare.
After-hours trading saw significant movement in certain stocks. Lululemon Athletica experienced a 10% drop in shares following weak guidance and slowing growth in North America. On the other hand, FedEx shares surged nearly 13% after surpassing quarterly earnings expectations. Meanwhile, Dutch Bros saw a slight decrease in shares after announcing a secondary offering of its shares.
For a comprehensive list of stocks that made notable moves after the bell, readers can find more information on the latest developments in the market. Overall, investors are navigating through a dynamic market environment with various opportunities and challenges on the horizon.