Stock market today: Dow, S&P 500, Nasdaq futures retreat from records as PCE inflation data matches estimates

An additional tariff warning and clash with Norway pushed Caterpillar (CAT) shares nearly 3% lower on Friday morning.

On Thursday, the construction machinery maker stated it expects to see a greater hit from tariffs this year than previously thought. The company said it anticipates a tariff hit of $1.5 billion to $1.8 billion this year, above its prior forecast of up to $1.5 billion, which the company issued with its earnings release on Aug. 5.

It expects tariff costs of $600 million for the third quarter, up from a prior forecast of up to $500 million.

Caterpillar stock is also under pressure after Norway’s $2 trillion sovereign wealth fund, the world’s largest, said on Monday it sold all its shares in the company. The fund’s Council on Ethics flagged the company’s supply of bulldozers in Israel that are used in the occupation of Gaza and the West Bank.

Norway’s prime minister tried to defuse the controversy after Trump ally Sen. Lindsey Graham called the decision “offensive” and suggested that the US should impose additional tariffs on Norway.