The Dynamics of Utility Stocks amidst Adversity of Hurricane Sandy

•Hurricane Sandy's impact on utility industry liquidity and trading.•Utility stocks negative effects compared to non-utility stocks.•Natural Gas Distribution segment prolonged post-hurricane liquidity challenges This study explores Hurricane Sandy's impact on utility stock liquidity and trading. Comparing with non-utility stocks, it reveals reduced liquidity and trading mainly in utilities, implying higher costs and instability for investors during disasters. Segmenting y NAICS codes shows worse liquidity in Natural Gas Distribution and Water than Electric Power Generation. While Electric Power Generation and Water rebounded in a month, Natural Gas Distribution struggled due to lasting infrastructure and supply chain issues. This highlights how natural disasters can disrupt different segments of the utility industry, affecting their liquidity and trading patterns.