Deere shares jump to record as traders rotate out of big tech
Deere benefiting from rate cuts, industrial policy stabilization
Deere & Co. shares briefly touched an intraday record high, capping off a rally that’s come as interest-rate cuts and strong US growth push investors into sectors of the market closely linked to the health of the economy.
The stock rose as much as 2.3% Thursday morning, touching a high of $537.26. Shares took a breather later in the session as a tech selloff dragged the broader market down, with the S&P 500 Index down 0.8% as of 12:49 p.m. in New York.
Industrials stocks have rallied to kick off 2026, lagging only the energy and materials sectors, after three straight Federal Reserve rate cuts last year and data that showed the US economy expanding at a healthy clip. Deere sells construction equipment in addition to its iconic farm machinery, and Caterpillar Inc. said Thursday that it’s seen retail sales rise more than it expected in that sector.
“Deere has benefited from more of that risk-on appetite,” said Oppenheimer analyst Kristen Owen, who has an outperform rating on the stock. “That’s a function of rate cuts. It’s a function of maybe some stabilization in industrial policy. Folks are starting to look through to the back half of 2026 where potentially tariff comps get a little bit easier.”
Some of the rally earlier this month came as traders tried to capture upside from a Supreme Court ruling on President Donald Trump’s sweeping tariffs, Owen said. The shares leaped more than 7% in the three sessions leading up to Jan. 9, only to tumble 2.5% after a decision on the levies didn’t arrive. A ruling is unlikely before Feb. 20.
Investors are still waiting for a rebound in the US farm economy, something that would spur farmers to buy new tractors and other equipment. Deere’s shares hit their last record in May on hopes that an upturn was on the way, but that turned out to be a head fake. Trade tensions between the US and China have hurt demand for crops, while tariffs have raised costs for machinery companies.
When the company reports earnings next month, Wall Street will be looking for any update on its industry outlook. Deere said in November that it expected industry sales of large equipment to fall 15% to 20% in the US and Canada.
“That was a little worse than I think most people thought,” Westwood analyst Trip Rodgers said. “If that changes at all and that looks like it’s being conservative, that could be a catalyst.”
