New York, March 3, 2026, 18:23 (ET) — Trading after hours.
- CAT shed nearly 4% by the close, capping a choppy session for the industrial heavyweights.
- The surge in oil, triggered by escalating conflict in the Middle East, shoved inflation to the forefront once again.
- Traders keep an eye on CONEXPO headlines, with Friday’s U.S. jobs report also on the radar.
Caterpillar Inc. (CAT) slipped roughly 4% to $722.18 in after-hours action following the 4 p.m. bell, deepening a session tumble as traders rotated out of economically sensitive names. Shares ranged from $706.83 to $737.47, putting the industrial giant’s market cap near $223 billion.
Oil surged, with Brent finishing 4.7% higher at $81.40 a barrel. U.S. crude closed at $74.56, marking the strongest settlement for both benchmarks in over a year. The move came as clashes involving the U.S., Israel, and Iran rattled energy flows and heightened concerns over supply. “The market is thinking there might be a quicker resolution,” said Phil Flynn, senior analyst at Price Futures Group. 1
The same sentiment ran through the broader markets. The Dow dropped 0.8%, with the S&P 500 off 0.9% as investors tried to gauge if pricier energy might keep inflation stubborn—and muddy up the rate picture. “It’s all about uncertainty,” said Jack Ablin, chief investment officer at Cresset Capital. 2
Caterpillar, often seen as a gauge for construction, mining, and energy investment, tends to see its share price react to changes in growth forecasts and commodity costs. On days like this, the stock sheds its company-specific narrative, trading more as a stand-in for broader economic trends.
Caterpillar wasn’t the only one feeling the heat. Deere & Co shed around 1.8%. GE Aerospace declined by approximately 3.3%, while truck maker Paccar lost close to 2.6% in late trading data.
The day before, another data point landed: ISM’s manufacturing PMI slipped to 52.4 for February, still above the 50 mark that indicates growth. But the Prices Index? That shot up to 70.5, reflecting higher steel and aluminum costs and tariff-driven gains for imports, according to ISM. 3
Caterpillar kicked off CONEXPO-CON/AGG in Las Vegas by showcasing a slate of tech-focused initiatives—think more AI and autonomy, new connected fleet solutions, and fresh programs like Cat Rentals and Cat Compact. “We’re rapidly innovating to simplify how our customers operate,” CEO Joe Creed said. 4
Caterpillar’s Industrial Power Systems division said Tuesday it plans to roll out new engines at the show, spotlighting the higher-horsepower Cat C3.6 and a fresh addition, the C13D. The lineup also covers new service and monitoring tools, all geared toward stretching 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
Despite the steady flow of product and tech news, shares simply moved with the broader market. Energy prices, inflation signals, and headline risk mattered a lot more than whatever buzz was happening on the Las Vegas show floor.
This can reverse quickly. Should tensions ease and energy prices come down, money tends to shift back toward industrial cyclicals; but if supply snags worsen, those same stocks can get slammed by rising costs and fragile sentiment. Caterpillar, for its part, flagged around $2.6 billion in tariff costs for 2026—a hit that stings more when inflation indicators like ISM’s are elevated. 6
Next up for traders: the February U.S. employment report, set for release Friday, March 6 at 8:30 a.m. ET. For CAT, it comes down to whether wage trends and demand data add fuel to the inflation worries behind Tuesday’s risk-off slide. 7
