Utility Stocks Come Down From AI-Driven Highs

Group 1 - Shares of Constellation Energy, NRG Energy, and Vistra experienced significant declines on Wednesday, raising questions about the sustainability of their recent momentum in the utilities sector [1][2][3] - The declines followed record highs achieved at the end of the previous week, driven by optimism regarding growth opportunities from increased energy demand for artificial intelligence [2][3] - Analysts from BTIG suggested that utilities could face a correction of approximately 7% to 10%, citing stretched valuations relative to historical levels [4][5] Group 2 - Constellation Energy was the worst performer in the S&P 500 on Wednesday, with a drop of 6.1%, while NRG Energy and Vistra saw declines of 5.3% and nearly 3%, respectively [6] - Despite the recent declines, all three companies remain in positive territory for 2024, with Constellation shares more than doubling, NRG stock up over 70%, and Vistra being the top performer in the S&P 500 with more than tripled value since the start of the year [7]