Industrial firms slide after US midterm results amplify data center demand worries

By Reuters News

** Shares of industrial firms Caterpillar CAT.N, Cummins CMI.N and Johnson Controls JCI.N drop

** CAT, CMI, JCI track slide in AI-data center stocks as investors brace for tighter scrutiny after Democratic US midterm sweep

** CAT and CMI have benefited from strong power generation and backup power equipment demand from data centers; JCI a key supplier for data center cooling solutions

** CAT down 5%, CMI down 4.7%, JCI down 7.3%

** All three stocks rated "buy" on average - data compiled by LSEG

** CAT has fallen ~45% from its end-June peak and is up just 4% YTD, weighed down by data center demand durability concerns

** Those concerns have also weighed down CMI, which extended YTD losses to 6%, while JCI pares its yearly gains to 16%

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