BUZZ - The results of the US midterm elections have intensified concerns over data center demand, leading to a decline in industrial stocks.

November 4 - ** The share prices of industrial companies Caterpillar (CAT.N), Cummins (CMI.N), and Johnson Controls (JCI.N) fell

** CAT, CMI, and JCI declined in tandem with AI and data center-related stocks (link), as investors expect these sectors to face stricter scrutiny after a Democratic sweep in the US midterm elections

** CAT and CMI have benefited from strong demand for power generation and backup equipment in data centers; JCI is a major supplier of cooling solutions for data centers

** CAT fell by 5%, CMI fell by 4.7%, and JCI dropped by 7.3%

** The average rating for these three stocks is "Buy" — data compiled by LSEG

** CAT has dropped about 45% from its late-June peak, and is up only 4% for the year, mainly due to concerns about the sustainability of data center demand

** These concerns have also dragged down CMI, widening its year-to-date decline to 6%, while JCI's year-to-date gain has narrowed to 16%

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