NEW YORK, Jan 21, 2026, 20:57 EST — Market closed.
- After slipping for two days, Caterpillar shares climbed 2.6% on Wednesday.
- After trade headlines calmed, investors found some footing, though cyclicals remain buffeted by ongoing volatility.
- Australia gave the green light for Caterpillar’s RPMGlobal deal to move forward, but court approvals are still pending.
Caterpillar Inc (CAT.N) shares climbed 2.6% on Wednesday, closing at $645.38 and breaking a two-day losing streak as Wall Street bounced back. The gain trailed Deere’s 4.1% surge, and Caterpillar ended the day roughly 1.6% shy of its 52-week peak.
This matters now since Caterpillar stands as a pure play on the growth cycle, and this week has revolved more around policy shocks than underlying fundamentals. The stock is trading close to its peak ahead of earnings, so even minor changes in sentiment can trigger swift moves.
Traders are waiting to see if the latest tariff chatter becomes real policy or just another round of posturing. Caterpillar’s end markets keep moving regardless, though investors tend to hold back until things clear up.
Caterpillar slipped 2.5% on Tuesday to $629.00, marking its second day in the red amid a widespread selloff in industrial stocks. The S&P 500 tumbled 2.06% that day.
The broader sell-off came after U.S. President Donald Trump renewed tariff threats against Europe amid his push to buy Greenland, sending investors scrambling toward safe-haven assets. “I’m not at the point yet … (that this) is going to precipitate a correction,” said Jamie Cox, managing partner at Harris Financial Group. Reuters
Markets steadied Wednesday as Trump retracted his Greenland comments, easing some of the week’s protective bets. “The market has largely removed the tail risk of a U.S. confrontation with its NATO partners,” said Pepperstone analyst Chris Weston. Investors now turn to Thursday’s core PCE report — the Fed’s favored measure of inflation. Reuters
RPMGlobal announced that Australia’s Foreign Investment Review Board has given a “no objection” notice for Caterpillar’s planned takeover through a scheme of arrangement, which is a court-supervised acquisition process. The company noted that Federal Court approvals remain necessary before the deal can move forward. TipRanks
In October, Caterpillar struck a deal to acquire the Australian mining software company for roughly $728 million, boosting its footprint in mining technology and services.
The next key event is earnings. Caterpillar plans to report its fourth-quarter and full-year 2025 results on Thursday, Jan. 29 at 5:30 a.m. CST, followed by its quarterly call at 7:30 a.m. CST, the company announced.
The setup works both ways. With the stock close to its peak, even a slight sign of weaker demand, reduced dealer inventories, or margin squeeze could weigh on the tape. Fresh tariff threats would only dampen risk appetite further.
Investors face a tricky session ahead, balancing Thursday’s core PCE data with fresh trade developments. For Caterpillar, the key date is Jan. 29 — that’s when results and guidance will reveal if the stock can push back toward last week’s highs.
