The utilities sector, as proxied by the XLU ETF, is trading lower due to a re-evaluation of the anticipated electricity demand from the artificial intelligence boom. Reports suggest this demand may be slower to materialize than previously expected, causing investors to question the sector's recent high valuations. Additionally, the sector is facing headwinds from the broader market in anticipation of a potential interest rate hike by the Federal Reserve, which tends to negatively impact rate-sensitive stocks like utilities.