"Because the index is price-weighted - meaning higher priced stocks have more influence over its direction - it has not been its tilt toward tech giants like Nvidia ( NASDAQ:NVDA ), Microsoft ( NASDAQ:MSFT ), and Apple ( NASDAQ:AAPL ), which together make up about 15% of the Dow's weighting, that have led it higher. Rather, the top performers in 2025 are Caterpillar ( ), Goldman Sachs ( ), and IBM ( )."
"Although the company's third-quarter results showed lower year-over-year adjusted profits of $4.95 per share on $17.6 billion in sales, the decline was due to higher global tax rates and a one-time tax charge. Sales, though, rose 10%, largely from higher end-user equipment volumes. A key catalyst has been the U.S. infrastructure push, including federal spending on roads, bridges, and energy projects. Caterpillar's backlog remains substantial, signaling sustained revenue visibility. Slightly lower interest rates from Federal Reserve cuts have eased financing for big-ticket purchases, boosting orders."
The Dow Jones Industrial Average is up nearly 13% year to date in 2025. The index's price-weighted structure gives higher-priced stocks greater influence, producing leadership that is not limited to pure AI names. Caterpillar, Goldman Sachs, and IBM top the Dow's performance list. Caterpillar shares have risen about 66.3% year to date amid strong global demand for construction and mining equipment, a 10% sales increase, and a sizable backlog supported by U.S. infrastructure spending. Third-quarter adjusted profits fell to $4.95 per share on $17.6 billion in sales due to higher global tax rates and a one-time charge. Slightly lower interest rates eased financing and boosted orders. Caterpillar is also positioning itself as an AI-enabling infrastructure provider through partnerships for on-site power and cooling for AI data centers.
Read at 24/7 Wall St.
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