Caterpillar Stock Craters Toward Worst Day in Seven Years, Rattling the Dow

Caterpillar shares tumbled sharply, putting the industrial giant on pace for its worst trading day in seven years, according to MarketWatch. The selloff came even though the company's data center equipment business held up well, as other parts of its operations fell short of expectations.

Because Caterpillar is one of the thirty companies that make up the Dow Jones Industrial Average, its steep decline weighed on the broader index, MarketWatch reported. The drop highlights how a single disappointing earnings report from a major industrial name can ripple through Wall Street's most closely watched benchmark.

Investors had been looking to Caterpillar's results as a signal of broader industrial and construction demand, making the shortfall in its non data center segments a notable red flag for the sector, per MarketWatch.