Pre-market trend | Xcel Energy (XEL) on May 1, funds flowing back into the utility sector, is the defensive logic heating up?

Yesterday's closing, Xcel Energy had a trading volume of USD 437 million, with the MACD daily line forming a bullish signal above the zero axis, and buying power shifted from previous hesitation to active. As one of the largest utility companies in the Midwest of the United States, Xcel Energy is known for its stable dividends and predictable earnings growth. In the current environment of increased market volatility, the utility sector often becomes a safe haven for funds, and the logic of capital flowing back into defensive assets is gaining momentum. On the news front, the Federal Reserve kept interest rates unchanged this week, but internal divisions reached the highest level in thirty years, with three officials opposing continued hints of rate cuts. The uncertainty regarding the interest rate path has intensified, and this environment is typically favorable for the valuation recovery of high-dividend utility stocks—when the direction of interest rates is unclear, the attractiveness of stable dividend assets increases relatively. Meanwhile, the situation between the U.S. and Iran has led to high oil prices, but Xcel Energy's power generation structure is primarily based on wind, nuclear, and natural gas, making it relatively insensitive to oil prices, and it may benefit from revenue elasticity in a high electricity price environment. Additionally, the expected growth in electricity demand brought about by the AI data center construction boom provides a new narrative for the long-term growth of utility companies. From a technical perspective, the stock price is running above the short-term moving averages, with the 5-day and 10-day moving averages showing a mild upward trend, and a bullish arrangement is beginning to form. Although the trading volume is not extremely large, it is considered active for utility stocks. It is important to note that the overall increase in the utility sector is limited, and if the market's risk appetite quickly rebounds, defensive sectors may face pressure from capital outflows