Caterpillar and Deere Face Yield Pressure After October 7 Losses

Caterpillar fell as much as 7% and Deere dropped 4% on October 7, as the 30-year Treasury yield climbed to 5.7%, its highest level in more than two decades. The S&P 500 fell about 0.2%, while industrial stocks faced broader pressure and concerns about a federal competition inquiry into agricultural equipment.

Insider Monkey’s analysis said higher long-term borrowing costs can weigh on equipment demand because construction firms and farmers often finance purchases. It also pointed to valuations: Caterpillar traded at about 37.1 times trailing earnings on October 6, while Deere’s multiples were also described as elevated.

Caterpillar faces an additional valuation risk tied to sentiment around AI infrastructure spending, the article said. Its Power & Energy segment recorded $8.24 billion in second-quarter 2026 sales, up 17% year over year, with data-center demand contributing to the company’s growth story.

Deere’s outlook is more closely tied to a potential farm-demand recovery. The company raised its fiscal 2026 net-income forecast to $4.75 billion-$5.00 billion, while management expects large agricultural equipment demand in the US and Canada to fall 15%-20% this fiscal year.

As of 14:00 UTC on October 13, Caterpillar shares traded at $776.20, down 2.9% since the previous close, while Deere shares were at $637.89, up 0.83%. The article identified long-term yields and regulatory concerns as indicators to watch for both companies.