The utilities sector, as measured by the XLU ETF, is trading down 1.25% in the current session. This move is likely attributable to broader market concerns following the release of slightly higher-than-expected U.S. inflation data (PCE Price Index) on August 26th. This has led to a strengthened U.S. dollar and increased investor expectations for a potential Federal Reserve interest rate hike. As a rate-sensitive sector, utilities tend to underperform when interest rates rise, as it increases their borrowing costs and makes their dividend yields less attractive compared to bonds.