Industrials Fall as Traders Pull Back From AI-Linked Stocks

Caterpillar, a construction-equipment maker that has become a major generator supplier to data centers, fell sharply. Rockwell Automation also suffered one of its biggest losses in recent years, even as the maker of factory-automation equipment reported brisk growth in fiscal fourth-quarter earnings.

Toyota shares rallied after the Japanese automaker lifted its earnings projection for the year. The company cited cost cuts and a weaker yen as factors supporting the higher outlook.

Elsewhere in the sector, drone maker Zipline secured $1.5 billion in fresh funding. The investment more than doubled the startup’s valuation from earlier this year, taking it to $21.5 billion.