Caterpillar Inc (NYSE:CAT) shares are moving lower on Wednesday as the broader industrial sector came under selling pressure. Here’s what you should know.
Caterpillar shares are retreating from recent levels. Why is CAT stock dropping?
Oil prices jumped sharply after new U.S. strikes in the Strait of Hormuz reignited supply concerns. Higher energy costs raised fears that inflation could stay elevated, which in turn could keep interest rates high and weigh on demand for heavy equipment.
West Texas Intermediate climbed 3.3% to about $91.07 per barrel and Brent rose 2.9% to roughly $94.10. That move pushed traders out of many economically sensitive names, including Caterpillar.
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