U.S. Stocks Fall Amid Inflation Concerns, Tariffs Hit Caterpillar

U.S. equities fell at midday due to rising inflation and investors pulling money ahead of Labor Day. Caterpillar shares dropped due to tariffs impacting results, while Autodesk was the best performer after beating earnings and revenue estimates. Nvidia shares declined on a report of competition from Alibaba Group Holdings. Dell Technologies shares fell after missing storage product sales forecasts and giving weak guidance.

U.S. equities fell at midday today as investors reacted to rising inflation and pulled money out of the market ahead of the long Labor Day weekend. Key market movers included Caterpillar, Autodesk, Nvidia, Dell Technologies, and Alibaba Group Holdings.

Caterpillar (CAT) shares sank when the big farm and construction equipment manufacturer warned tariffs would negatively impact results for the rest of the year. The company estimated a potential hit of $1.5 billion to $1.8 billion due to tariffs [1]. This news weighed heavily on the stock, which lost nearly 3% in premarket trading [1].

Autodesk (ADSK), on the other hand, was the best-performing stock in the S&P 500. The software firm reported strong demand for its design software used in artificial intelligence data centers. Autodesk beat earnings and revenue estimates, earning $2.62 per share on $1.76 billion in revenue, while analysts had penciled in $2.45 per share and $1.73 billion [1]. The company also posted upbeat guidance for the current quarter and full year, which boosted its stock by 9.9% [1].

Nvidia (NVDA) shares declined as Alibaba Group Holdings (BABA) was reported to be producing an artificial intelligence (AI) chip to compete with Nvidia in China. The news of Alibaba's AI chip development saw Nvidia's shares fall by about 1% in the premarket [1].

Dell Technologies (DELL) shares tumbled after the PC maker's storage product sales missed forecasts and it gave weaker-than-expected current-quarter guidance. The stock slipped 5% after the company's earnings per share guidance was below Wall Street's expectations, despite beating on its top and bottom lines for the latest quarter [1].

U.S. equities were lower at midday, as inflation rose and investors pulled money out of the market ahead of the long Labor Day holiday. The Dow Jones Industrial Average, S&P 500, and Nasdaq all fell. Oil futures slid, gold prices rose, and the yield on the 10-year Treasury note gained. The U.S. dollar was little changed against the pound and yen but lost ground to the euro. Most major cryptocurrencies traded lower [2].

References:
[1] https://www.cnbc.com/2025/08/29/stocks-making-the-biggest-moves-premarket-baba-ulta-dell-cat.html
[2] https://finance.yahoo.com/news/top-stock-movers-now-caterpillar-154207478.html