NEW YORK, March 5, 2026, 19:26 (EST)
Shares of Caterpillar Inc (CAT.N) slid 3.6% on Thursday, closing the session at $706.08. Earlier, the stock had dropped as low as $693.81.
Caterpillar stands out as one of the rare U.S. industrial heavyweights capable of shifting sentiment single-handedly. With its elevated share price, the stock packs even more punch in the price-weighted Dow Jones Industrial Average, where pricier names exert greater influence over index moves.
The drop is worth watching, with Caterpillar’s outlook now riding on two factors moving fast: energy prices and interest rates. A spike in oil or fading hopes for lower rates usually send investors selling shares of construction, mining and freight names first.
Stocks ended in the red, weighed down by the ongoing Middle East conflict now hitting its sixth day and raising new worries about tanker movement through the Strait of Hormuz—vital for oil supply. U.S. crude jumped 8.5%, landing at $81 per barrel, while Brent settled up 4.9% at $85.41. “Look at oil today, it tells you everything you need to know about why the stock market’s down,” said Michael Antonelli, market strategist at Baird Private Wealth Management. Mizuho Securities chief economist Steve Ricchiuto pointed out, “people are looking at the payroll numbers for tomorrow” after fresh data hinted at a stronger labor market. Reuters
The Dow at one point tumbled close to 1,100 points, with heavy pressure from Caterpillar and Goldman Sachs together wiping out about 443 points from the index, according to MarketWatch. The index’s mechanics mean every $1 swing in a Dow stock moves the overall average by roughly 6.16 points.
Deere & Co (DE.N) slid 3.8% to $590.69. The stock often moves alongside expectations for farm and construction outlays, as well as trends shaping commodity-dependent economies. Both names usually trade in step.
At CONEXPO/CON‑AGG in Las Vegas this week, Caterpillar rolled out plans for a “Building the Future Workforce” initiative, aiming for a spring 2026 launch. The company also handed out top honors at its global technician and operator competitions during the show. Cat dealers could be looking to add more than 38,000 technicians worldwide by the close of 2028, the company noted. “As global infrastructure demand increases, access to skilled technicians and operators is a critical issue for our industry,” said CEO Joe Creed. Caterpillar
Executive Chairman Donald J. Umpleby III had 1,591 shares withheld at $719.13 apiece on March 3, according to a regulatory filing, to settle taxes from vesting restricted stock units. Following the move, Umpleby reported a direct stake of 465,745 shares.
Caterpillar is bracing for roughly $2.6 billion in tariff-related expenses in 2026, executives told investors, even as its power and energy division rides a wave of data center demand. “Prime power” generators—built for nonstop electricity—are seeing a bump in orders, Chief Financial Officer Andrew Creed said during the January post-earnings call. Jefferies’ Stephen Volkmann flagged that while sales beat expectations, tariff pressures limited any margin gains. Reuters
Back in January, Caterpillar named Creed to take over as chairman starting April 1, stepping in for Jim Umpleby, who’s retiring after more than 40 years at the company. Creed’s been with the equipment maker since 1997.
Still, the stock could remain at the mercy of the same headlines that rattled Thursday: either an extended conflict driving fuel prices higher, or a swift resolution sending them tumbling. A weak payrolls number might stoke bets on quicker Fed cuts, while strong data would probably curb those hopes.
Caterpillar rolled into March riding momentum from a stretch that turned it into a major force behind the Dow’s advance earlier in the year. Back on Feb. 6, the shares were up roughly 27% for 2026 so far, after tacking on over 50% through 2025, Reuters noted.
