New York, February 28, 2026, 13:26 EST — Market closed
- Caterpillar shares closed lower on Friday and eased again in after-hours trading.
- A hotter U.S. wholesale inflation reading revived “higher for longer” rate talk.
- Next week’s jobs and inflation data could set the tone for CAT and other cyclicals.
Caterpillar Inc (CAT) shares ended Friday down 1.34% at $742.83, and were last quoted around $740 in after-hours trade as U.S. stocks slipped on inflation jitters. The heavy-equipment maker ranged from $731.04 to $751.49, with about 3.44 million shares traded. 1
The move matters because Caterpillar is a bellwether for construction and mining demand, but it is also a stock that tends to react fast when markets rethink growth and rates. With U.S. markets shut until Monday, the next push in CAT may come more from macro numbers than from any single company headline.
The U.S. producer price index (PPI) rose 0.5% in January after a 0.4% increase in December, the Labor Department reported on Friday. Producer prices were up 2.9% over the 12 months through January. 2
Economists had forecast a 0.3% monthly gain and a 1.6% annual rise, according to a FactSet survey. Bankrate senior economic analyst Mark Hamrick said “the outlook for inflation in the near term is that it likely will remain elevated,” while Pantheon Macroeconomics’ Samuel Tombs pointed to retailers continuing to lift prices; Nationwide economist Ben Ayers said he expects the Fed to stay “on pause” at its March meeting. 3
Natixis CIB economists Christopher Hodge and Selin Aker wrote that “the Fed’s reaction function has shifted slightly more hawkish,” language that traders read as a warning against early rate cuts. For Caterpillar, rate talk matters because many customers finance big-ticket equipment and delay orders when borrowing costs bite. 4
Caterpillar’s pullback has also carried extra weight for the Dow because the index is price-weighted, giving higher-priced shares more influence. MarketWatch estimated that a $1 move in any Dow component shifts the index by about 6.16 points, and said Caterpillar and Nvidia were among the biggest point drags in Thursday’s selloff. 5
On the corporate front, UK electrification firm Equipmake said Caterpillar Venture Capital, a wholly owned subsidiary of Caterpillar, agreed to a further £3 million senior secured convertible loan note. The note carries 10% annual interest and matures on March 31, 2029, with a conversion option tied to Equipmake’s share price, the company said. Equipmake chief executive Ian Foley called the follow-on investment “the value of this partnership.” 6
Separately, Progress Rail, a Caterpillar company, and Wabtec said on Thursday they reached a settlement in an antitrust case, with no admission of liability. The firms said they remain suppliers of long-haul freight locomotives and cab components to Class I railroads and other customers. 7
In the machinery space, Deere ended slightly higher on Friday while Caterpillar fell, according to MarketWatch data, a reminder that stock-specific flows can split the group even on a risk-off session. 8
But sticky inflation can cut both ways for Caterpillar: it can keep rates higher for longer and slow new projects, while higher costs can squeeze customers and, eventually, equipment demand. A sharper cooling in U.S. nonresidential building or commodity-linked capex would test the stock after February’s run and late-week drop.
Next week, traders will focus on the U.S. jobs report for February due March 6, with CPI for February scheduled March 11 and the February producer price report set for March 18. Those dates, starting with March 6, are the next clear catalyst for rate bets — and for economically sensitive names like Caterpillar when markets reopen Monday, March 2. 9
