uploads/2016/11/AEP-stk-1.jpg

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

By

Updated

Market performance

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.

AEP stk

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.

Article continues below advertisement
Advertisement

More From Market Realist