The Utilities Select Sector SPDR Fund (XLU) has shown unusual volatility early in 2026. After a strong 22% gain through November 2025, fueled by AI-driven electricity demand and falling interest rates, XLU dipped to around $43 by January 7 amid broader equity pullbacks and insider selling at holdings like UGI Corporation. While utilities are typically stable, this behavior signals potential opportunities as data center electricity demand is projected to double by 2030, positioning utilities as key beneficiaries of the AI boom.

Looking at the 11 main sectors and the SPDR ETFs that represent them, only the utilities sector moved higher in September. I took these screenshots from the Tickeron screener for the 11 Select Sector SPDR ETFs.We see that the Utilities Select Sector SPDR (XLU) gained 0.23% in the past month as the top performer of the group.

The utilities sector is often viewed as a safety sector, offering less risk than the more cyclical sectors.The Utilities Select Sector SPDR (NYSE: XLU) has dropped 1.3% since July 8 and that is the worst performance among the 10 main sector SPDRs. While the XLU has lagged in the last few weeks, the slight decline has allowed a couple of trend lines to catch up to the fund.

Normally, I look for signals on stocks or ETFs that are hitting the lower rail of upward sloped channels, but the Utilities Select Sector SPDR Fund (NYSE: XLU) got my attention yesterday as it is up near the upper rail of a trend channel.In the case of the XLU, it has been known to stay up close to the upper rail depending upon the risk appetite of investors. We see on the chart below how the channel formed in the second quarter before falling in December to form the lower rail.

Russian hackers have also gained access to U.S. electric utility networks, claiming "hundreds of victims" in a campaign that would have enabled the hackers to cause disruptions to service at best and full blackouts at worst.Though the government has known about the Russian threat since 2014, this was the first time they alerted the public to the threat with so much detail.