CAT ~-6%, worst in the Dow: Truist trims PT to $1,100 on AI/power capex worries + 30y at 24-yr high; DE ~-4%

[LondonNewsTrader]

Caterpillar is the Dow's biggest drag today, down about 6% to roughly $812 from Tuesday's $863 close. It's a mix of one analyst note and the bond market.

The catalysts:
- Truist (Jamie Cook) cut the PT to $1,100 from $1,225 but kept a Buy. The note questions how long the power-gen, data-centre and AI infrastructure spending surge can last, and also flags higher rates and diesel costs. Zacks also moved it to Hold from Strong Buy (a quant model, but it shows up on screens).
- The bigger driver is rates. The 30y hit ~5.72%, its highest since 2002. Heavy equipment is bought on credit and carried in dealer rental fleets, so the whole group is lower: DE ~-4% (around $658), PCAR ~-2%.
- Valuation gives it less cushion. CAT was trading around 35x trailing earnings, high for a cyclical, which makes the multiple sensitive to discount-rate moves.

Price action notes:
- Size matters. On a ~$400B name, -6% is a big institutional move, not retail noise. Watch whether it holds above the 50-day (around $822 per MarketBeat data). It's already slipped under that area intraday, so a close below would be the technical tell.
- For intraday traders, CAT has traded tick-for-tick with the 10y today. If yields stall after the minutes and the strong 10y auction, a dead-cat bounce into the close is plausible. If they keep climbing, I wouldn't try to catch it.
- Pairs to watch for confirmation: the power/AI-capex names (VRT, ETN, GEV). If they're weak too, it's the theme being repriced. If they hold, it's mostly rates plus one PT cut.

Sources (public): Tickeron, 24/7 Wall St., MarketBeat, Investing.com.

Anyone stepping in on CAT here, or waiting to see where it closes against the 50-day? Is the "AI capex durability" worry spreading to the rest of the power trade in your screens?