Caterpillar dropped 4% Monday while Deere rose 1%, a split explained entirely by CAT's AI data center power business and DE's lack of any exposure. XLI fell 2% versus SPY's 0.8% drop, making Caterpillar the industrial sector's anchor weight, not just a passenger in a broad market selloff. Caterpillar's $72 billion backlog and orders already booked into 2029 and 2030 suggest Monday's selloff is a momentum unwind rather than a collapse in actual demand.
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Shares of Caterpillar (NYSE:CAT) are down 4% to $783.15 in Monday trading, leading industrial names lower. The slide caps a rough stretch, with Caterpillar stock down 8% over the past month even as it holds a 38% gain year to date. Deere & Company (NYSE:DE) stock is going the other way, up 1% to $684.25, and Paccar (NASDAQ:PCAR) stock is little changed at $121.99, off 0.6%.
The split matters because Caterpillar is the only one of the three with a large power generation business tied to artificial intelligence (AI) data center construction. The sector picture reinforces that read. The Industrial Select Sector SPDR ETF (NYSEARCA:XLI) is down 2%, and the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is off by 0.4%.
Caterpillar is sliding faster than the industrial fund, which itself is down by more than the broad market, so Caterpillar stock is the weight rather than a passenger. 24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about.
The ten best stocks to buy right now. The report is free, and you can see why we think each stock is a top investment today. No company-specific announcement from Caterpillar sits behind Monday's decline.
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