Cramer says ongoing rally in utilities is a harbinger of economic slowdown
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CNBC's Jim Cramer suggests that the ongoing rally in the Dow Jones Utility Average indicates a slowing economy and lower interest rates. The utilities sector performs well during economic slowdowns because consumers must pay their utility bills. Cramer also mentions that utilities have to issue a lot of debt to maintain and expand their operations, and they are now spending more to support the growth of data centers. He believes that signs of a slowing economy have been appearing over the last few weeks, and Federal Reserve Chair Jerome Powell's comments about fewer interest rate cuts may have contributed to the slowdown. Cramer concludes that the rally in utilities is a signal that the economy is headed for a slowdown.



https://www.cnbc.com/2024/05/08/cramer-says-ongoing-rally-in-utilities-signals-an-economic-slowdown.html