The sector's recent underperformance was largely driven by aggressive bets on impending rate hikes, which historically pressure high-dividend utility stocks. As those market pressures moderated, investors moved back into the space. PG&E saw the most significant movement, with shares jumping 4.7% as concerns regarding the California utility’s potential wildfire liabilities briefly settled. The move highlights how sensitive the industry remains to both macroeconomic policy shifts and regional operational risks.