Industrial firms slide after US midterm results amplify data center demand worries
CAT•Caterpillar, Cummins and Johnson Controls shares fell 5%, 4.7% and 7.3%, respectively, as US midterm results intensified concerns about data center demand durability and tighter scrutiny. All three stocks are rated “buy” on average.
1. Shares fall
Caterpillar, Cummins and Johnson Controls declined alongside AI data center stocks as investors braced for tighter scrutiny following a Democratic sweep in the US midterms.
2. Data center exposure
Caterpillar and Cummins have benefited from demand for data center power generation and backup power equipment, while Johnson Controls is a key supplier of data center cooling solutions. Caterpillar has fallen about 45% from its end-June peak and is up 4% year to date; Cummins’ year-to-date losses have widened to 6%, while Johnson Controls has pared its gains to 16%.
