NEW YORK, Feb 27, 2026, 13:55 EST — Regular session
- Caterpillar shares slipped roughly 2% in afternoon trading, as Wall Street retreated on renewed inflation concerns.
- Wells Fargo bumped its Caterpillar price target up to $870. The stock, however, has retreated from its recent highs.
- Next week, traders are eyeing the U.S. jobs report and the CONEXPO-CON/AGG construction show for new clues on demand.
Caterpillar dropped roughly 2.1% to $737.09 Friday afternoon, pulling back from recent highs after a choppy stretch. Shares swung between $731.04 and $751.15, following a 1.8% loss the day before. Investing.com
Caterpillar’s significance here comes from its reputation as a straightforward indicator of U.S. heavy-equipment demand and business investment. The stock’s also been a favored pick among investors looking for industrial growth, those who’d rather not pile into tech, making it one of the more crowded trades in that “industrial winners” camp.
The tape’s shifted. Rates and inflation have the reins again, and heavy equipment stocks are usually among the first to react.
Analyst calls keep climbing. Wells Fargo’s Jerry Revich took his price target up to $870 from $756, maintaining an “overweight” on the stock, according to StreetInsider. StreetInsider.com
The mood soured across the board. Wall Street’s key indexes slipped, with “AI anxiety” dragging on sentiment and a new inflation print turning up the heat. “Inflation has reared its ugly head,” said Ben Fulton, CEO of WEBs Investments, in comments to Reuters. Reuters
Friday’s data put the U.S. Producer Price Index (PPI) up 0.5% for January—outpacing forecasts and adding fuel to the argument that the Federal Reserve could hold off on rate cuts. “Given still-buoyant core inflation… we expect the Fed to remain on pause during its upcoming March meeting,” said Ben Ayers, senior economist at Nationwide. Reuters
Caterpillar feels the rate squeeze on two fronts—pricier borrowing can stall construction and mining budgets, and it also tweaks the math for buyers financing new equipment. The stock’s sharp retreat shows just how little slack there is for “good news” when markets start adjusting their rate expectations.
Looking ahead, the industry gets a major pulse check next week as CONEXPO-CON/AGG kicks off March 3-7 in Las Vegas. Caterpillar, Deere, Komatsu—expect them all to have a presence as buyers zero in on order books, price signals, and what’s ahead for fleet upgrades. CONEXPO-CON/AGG
The risk, though, is clear: persistent inflation and delayed rate cuts could sap demand for new equipment. That scenario might leave dealers with excess inventory. Even if earnings remain steady, the stock’s valuation could get squeezed.
Friday brings the monthly U.S. jobs report, set for March 6, and traders are eyeing how markets will respond, with rate expectations and cyclical stocks hanging in the balance, according to Reuters. Reuters
