New York, March 3, 2026, 18:23 (ET) — After-hours.
- CAT was last down about 4% after a volatile session for industrial bellwethers.
- Oil’s jump on the widening Middle East conflict put inflation back in the driver’s seat.
- Traders are watching CONEXPO updates and Friday’s U.S. jobs report.
Caterpillar Inc. (CAT) shares were last down about 4% at $722.18 in after-hours trade — after the 4 p.m. close — extending a sharp session decline as investors pulled back from economically sensitive stocks. The stock swung between $706.83 and $737.47 and the company is valued at about $223 billion.
Oil’s jump was the immediate pressure point. Brent settled up 4.7% at $81.40 a barrel and U.S. crude ended at $74.56, both at their highest settlements in more than a year as fighting involving the U.S., Israel and Iran disrupted energy shipments and raised supply risks. “The market is thinking there might be a quicker resolution,” said Phil Flynn, senior analyst at Price Futures Group. 1
Broader markets reflected the same mood. The Dow fell 0.8% and the S&P 500 slipped 0.9% as investors weighed whether higher energy costs could keep inflation sticky and complicate the rate outlook; “it’s all about uncertainty,” said Jack Ablin, chief investment officer at Cresset Capital. 2
Caterpillar is a bellwether for construction, mining and energy spending, and its share price can move with swings in growth expectations and raw-material costs. On days like this, it trades less like a single-company story and more like a macro proxy.
The pressure was not isolated to Caterpillar. Deere & Co fell about 1.8%, GE Aerospace slipped roughly 3.3% and truck maker Paccar dropped about 2.6% in late trading data.
A day earlier, a key U.S. factory survey added another layer. ISM’s manufacturing PMI — a survey-based gauge where readings above 50 signal expansion — eased to 52.4 in February, while its Prices Index jumped to 70.5 as steel and aluminum costs rose and tariffs pushed up prices for imported goods, ISM said. 3
In company news, Caterpillar used the start of CONEXPO-CON/AGG in Las Vegas to highlight a technology-heavy push, including expanded AI and autonomy offerings, connected fleet tools and new customer programs such as Cat Rentals and Cat Compact. CEO Joe Creed said the company is “rapidly innovating to simplify how our customers operate.” 4
On Tuesday, Caterpillar’s Industrial Power Systems unit said it will showcase new engines at the show, including a higher-horsepower Cat C3.6 and the new C13D, alongside service and monitoring tools aimed at extending engine lifecycles. “As the construction landscape changes, our extensive portfolio of solutions and expertise… will help solve our customers toughest challenges,” said Steve Ferguson, a senior vice president at Caterpillar Industrial Power Systems. 5
Even with the product and technology drumbeat, the stock traded with the tape. Energy, inflation expectations and headline risk carried more weight than booth traffic in Las Vegas.
But this can turn fast. If the conflict cools and energy prices retreat, investors often rotate back into industrial cyclicals; if disruptions deepen, higher input costs and weaker confidence can hit the same names again. Caterpillar has also warned it faces tariff-related costs of about $2.6 billion in 2026, a sensitivity that looks sharper when price gauges like ISM’s run hot. 6
What traders watch next is simple and scheduled: the U.S. employment report for February, due Friday, March 6 at 8:30 a.m. ET. For CAT, the read-through will be whether wage and demand signals reinforce the inflation anxiety that drove Tuesday’s risk-off move. 7
