Machinery Stocks Slide 6% Amid Momentum Unwind

Machinery Stocks Slide 6% Amid Momentum Unwind

Deere & Co. (NYSE:DE) shares fell 6.6% on Tuesday, while Caterpillar Inc. (NYSE:CAT) dropped 4.3%, contributing to a 3.7% decline in the S&P 1500 Machinery Index. CNH Industrial (NYSE:CNH) declined 5%, AGCO Corp. (NYSE:AGCO) fell 4.8%, and Cummins Inc. (NYSE:CMI) dropped 4%, extending the sector‑wide pullback.

Oppenheimer analyst Kristen Owen commented that the move represents a “pretty significant unwind in momentum,” noting it follows discrete updates such as Samsung’s earnings and continues a broader rotation observed over the past two weeks. The unwind also affected AI infrastructure stocks linked to data‑center demand for power‑generation equipment, where both Caterpillar and Cummins had previously benefited.

Agricultural machinery stocks faced additional pressure as the Purdue Ag Barometer recorded its lowest reading in 18 months, reflecting a sequential decline from May during a slump in corn prices, which have since rebounded.

Despite the Tuesday decline, the machinery sector remains up more than 20% year‑to‑date.