Investing.com — Deere & Co. (NYSE:DE) shares fell 6.6% on Tuesday, while Caterpillar Inc. (NYSE:CAT) dropped 4.3%, as the machinery sector experienced a sharp pullback from earlier gains this year.
CNH Industrial (NYSE:CNH) declined 5%, AGCO Corp. (NYSE:AGCO) fell 4.8%, and Cummins Inc. (NYSE:CMI) dropped 4% as the S&P 1500 Machinery Index tumbled 3.7%.
“What we are seeing today is a pretty significant unwind in momentum, which while it reflects some discrete updates (Samsung last night), is a continuation of the broader rotation that has occurred over the last two weeks,” Oppenheimer analyst Kristen Owen commented in an email to Bloomberg News.
Agricultural machinery stocks faced additional pressure after the Purdue Ag Barometer declined sequentially from May, marking the lowest reading in 18 months. Owen noted the survey was taken during a slump in corn prices, which have since rebounded.
Caterpillar and Cummins, both benefiting from data center demand for power generation equipment, participated in a broader pullback in AI infrastructure stocks following Samsung’s earnings results.
Despite Tuesday’s decline, the machinery index remains up over 20% year-to-date.
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