There's historic selling going on in a stock market sector because of rising rates

Utility stocks are getting pummeled to a historic degree as interest rates rise to their highest level in more than a decade, according to technical indicators. Jason Goepfert, the founder of SentimenTrader, said in a post on X that Monday's selling was so broad that a composite breadth indicator for utilities hit a level only seen in 2002, 2008 and 2020 over the past 33 years.

But even with Treasurys yielding above 5%, the dividend income from utilities looks less attractive. Utility companies also tend to carry heavy debt loads. That means that, as they need to refinance their own debt or take on more to expand, they will now be paying a substantially higher interest expense than they did even two years ago. "They have this situation where they're expected to pay out a certain yield.

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