New York, February 28, 2026, 13:26 EST — Market closed
- Caterpillar shares finished Friday in the red, then slipped again in post-market action.
- U.S. wholesale inflation came in stronger, putting “higher for longer” rate expectations back in play.
- CAT and its cyclical peers may take their cues from next week’s jobs and inflation numbers.
Caterpillar Inc (CAT) dipped 1.34% to close at $742.83 on Friday, with after-hours indications near $740 as inflation worries pressured U.S. stocks. The stock swung between $731.04 and $751.49. Volume hit roughly 3.44 million shares. 1
Caterpillar’s action carries weight: it’s a barometer for both construction and mining demand, and the stock has a reputation for moving sharply on shifts in market views about growth or rates. U.S. markets are closed until Monday, so the next significant move in CAT could hinge on incoming macro data rather than individual company news.
Producer prices in the U.S. climbed 0.5% in January, following December’s 0.4% gain, the Labor Department said Friday. Over the past year through January, the PPI advanced 2.9%. 2
Economists polled by FactSet were looking for a 0.3% rise on the month and a 1.6% increase year over year. “The outlook for inflation in the near term is that it likely will remain elevated,” said Mark Hamrick, senior economic analyst at Bankrate. Samuel Tombs at Pantheon Macroeconomics noted that retailers are still raising prices. Ben Ayers of Nationwide thinks the Fed will keep rates “on pause” when March rolls around. 3
Natixis CIB economists Christopher Hodge and Selin Aker say “the Fed’s reaction function has shifted slightly more hawkish,” wording traders took as a signal to dial back bets on early rate cuts. That hits Caterpillar especially; customers often use financing for costly equipment, and higher borrowing costs tend to push orders down the road. 4
Caterpillar’s retreat has packed an outsized punch on the Dow, thanks to the price-weighted structure that amplifies moves in higher-priced shares. MarketWatch pegged the impact: a $1 swing in any Dow name nudges the index by roughly 6.16 points. On Thursday, both Caterpillar and Nvidia ended up as top point sinks during the selloff, according to 9 .
UK-based Equipmake has secured an additional £3 million senior secured convertible loan note from Caterpillar Venture Capital, a subsidiary of Caterpillar. The company announced that the note will accrue 10% interest each year, due to mature on March 31, 2029, and includes a conversion feature linked to Equipmake’s share price. “The value of this partnership,” chief executive Ian Foley said of Caterpillar’s latest investment. 5
Progress Rail, part of Caterpillar, and Wabtec announced Thursday they’ve settled their antitrust dispute—neither side admitting liability. Both companies said they continue to supply long-haul freight locomotives and cab components to Class I railroads and other clients. 6
Friday saw Deere close just above water, while Caterpillar slipped, MarketWatch data show. That’s a split picture for machinery stocks, even with risk-off vibes in play. 7
Sticky inflation’s a double-edged sword for Caterpillar—on one hand, it pushes rates higher for longer, which can dampen fresh project starts. On the other, rising costs might hit customers’ wallets, turning into softer equipment demand. If U.S. nonresidential construction or commodity-related capital spending pulls back harder, the shares could come under pressure, especially after February’s rally and their slide later in the week.
Traders are eyeing the February U.S. jobs numbers set for release March 6, followed by February CPI on March 11 and producer prices coming March 18. Rate speculation could shift as those dates hit, especially for cyclical stocks like Caterpillar when trading resumes Monday, March 2. 8
