The S&P utilities sector jumped on Thursday, bucking the sharply negative trend of the overall market as it was poised for its biggest one-day pop in nearly three weeks. The sector gained 1.8%, while the Utilities Select Sector SPDR ETF , the largest-exchange traded fund to track the industry group, was up 1.4%. The rally comes after three straight days of losses, and amid a broad decline in the U.S. stock market. Utilities are seen as a defensive sector, one offering more stability and higher dividend yields than the overall market. Historically, it has outperformed in periods of economic uncertainty. Currently, the sector has a dividend yield of about 3.5%, compared with the 1.8% yield of the S&P 500 and the 2.81% yield of the U.S. 10 Year Treasury Note . The Dow Jones Industrial Average fell 1.8% on Thursday while the S&P 500 was off 1.6% and the Nasdaq Composite Index was down 1.7%. The losses came as the Trump administration’s plans to announce new trade restraints against China renewed fears about a potential trade war that could dent economic growth. Utilities were by far the top-performing S&P 500 sector of the day, and one of only three in positive territory.
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