---
title: "Caterpillar and Deere fell as industrials dropped 2.2%"
url: "https://etf.net/news/caterpillar-and-deere-fell-as-industrials-dropped-2-2-2026-10-07"
published_at: "2026-10-07T20:58:29.159Z"
updated_at: "2026-10-07T20:58:29.159Z"
byline: "ETF.net Research"
---

# Caterpillar and Deere fell as industrials dropped 2.2%

Caterpillar fell 5.7% and the industrial fund fell 2.2% on Wednesday, October 7, while the health-care fund rose 1.0%.

By ETF.net Research. Published Oct 7, 2026.

Caterpillar fell 5.7% and Deere fell 3.8% on Wednesday, October 7. XLI, which owns the industrial companies in the S&P 500, fell **2.2%**, the worst drop among the eleven sector funds.

Nine of those funds fell. XLV, which owns the health-care companies in that index, rose **1.0%**. SPY, the fund that holds the S&P 500, fell 0.2%.

Chart: **Industrials** were the worst of the eleven sector funds

Smaller companies fell more than SPY. IWM, which owns smaller U.S. companies, fell 1.3%.

The 10-year Treasury yield closed at 5.28% after touching 5.36%, its highest level since 2002. The 30-year yield also touched its highest since 2002, then closed at 5.67%.

Yields eased after the Treasury sold $39 billion of 10-year notes. TLT, which holds long-term U.S. Treasurys, touched its lowest price of the past year and ended down 0.2%.

The eleven sector funds, from the day's best to the worst:

Table: What it holds, Move

### The industrial drop ran through the fund

XLI had risen 0.9% on Tuesday, October 6. Wednesday more than reversed that gain.

Caterpillar is 7.3% of the fund, and its drop took 0.4 percentage points off it.

The Motley Fool's midday account cited an analyst downgrade and worries about artificial intelligence.

Deere fell after the Federal Trade Commission and the Department of Agriculture opened a public inquiry into farm-equipment markets, including whether companies are limiting competition. It is 3.1% of the fund, and the drop took 0.1 percentage points off it.

The rest of the holdings accounted for most of the decline.

Chart: XLI's 10 largest holdings **all fell**

### Drug makers lifted health care

The rise in XLV was spread across the large drug makers. Eli Lilly, 15% of the fund, rose 2.7% and added 0.4 percentage points. Johnson & Johnson, AbbVie and Amgen added about as much again.

### Vistra and NRG rose, but utilities finished flat

XLU rose 3.0% on Tuesday and finished flat on Wednesday.

Vistra, 3.9% of the fund, rose 3.9%. NRG Energy, 1.7% of the fund, rose 4.8%. NextEra Energy, 12.6% of the fund, fell 1.1%.

The sharp gains were in small holdings. NextEra is a much larger one, and it fell.

Wednesday was a broad selloff, and industrials were the worst of it.

Source: etf.net, https://etf.net/news/caterpillar-and-deere-fell-as-industrials-dropped-2-2-2026-10-07. Please cite the page URL.