What’s Next for American Electric Power’s Stock?

American Electric Power (AEP) has lost nearly all its gains of early 2016 in the last couple of months. A similar weakness was echoed in utilities too. The Utilities Select Sector SPDR (XLU) is trading 4% above its levels a year ago.

Importantly, chances of utilities rallying look slimmer now due to the increased possibility of a rate hike. Treasury yields are already on the brink of touching their yearly highs on rate hike expectations.