Key Highlights

  • Regal Rexnord gained on October 6 with no company-specific news, part of a broad rally in industrial and electrical equipment stocks.
  • The company makes electric motors, power transmission components and automation equipment used in data-center cooling systems.
  • US Capital Goods imports hit a record $146.4 billion in August, while total imports reached a record $420.8 billion.
  • GE Vernova and Generac also climbed on the AI power theme, alongside contractors Quanta Services, EMCOR and Comfort Systems USA.

Regal Rexnord (NYSE:RRX) climbed on Tuesday, October 6, as part of a broad rally in industrial and electrical equipment stocks across the Russell 1000. Regal Rexnord was listed with Dycom (NYSE:DY), Mayville Engineering (NYSE:MEC), Array Technologies (NASDAQ:ARRY) and Cummins (NYSE:CMI) as names that surged, tied to the theme of AI infrastructure and defense spending.

There was no company-specific news behind the move. Regal Rexnord rose with a group of suppliers whose products are woven into the construction and operation of data centers and the power systems that serve them.

What Regal Rexnord Makes

Regal Rexnord produces electric motors, power transmission components such as bearings, gears and couplings, and automation equipment. Its products are used in heating, ventilation and cooling systems, industrial machinery, conveyors and a range of other applications. In data centers, that kind of equipment helps move air and liquid for cooling and keeps critical systems running, which is why investors have increasingly grouped the company with AI infrastructure suppliers. Data centers generate enormous amounts of heat, and the fans, pumps and motors used to remove it run around the clock, creating steady Demand for reliable, efficient components.

Capex in the Spotlight

The AI spending theme had several strong data points on Tuesday. Constellation Energy (NASDAQ:CEG) signed a 20-year deal to Supply Alphabet's Google (NASDAQ:GOOGL) with 3,590 megawatts of nuclear power, including new capacity from reactor uprates, backed by more than $4.3 billion of investment. Marvell Technology (NASDAQ:MRVL) raised its long-term Revenue outlook at its investor day.

The government's trade report showed how much hardware is flowing into the build-out. Capital goods imports hit a record $146.4 billion in August, driven by semiconductors and AI equipment, and total imports reached a record $420.8 billion, pushing the Trade Deficit to $105.6 billion.

Other electrical and power names gained alongside Regal Rexnord. GE Vernova (NYSE:GEV) and Generac (NYSE:GNRC) climbed on the AI power theme, Cummins rose, and contractors such as Quanta Services (NYSE:PWR), EMCOR (NYSE:EME) and Comfort Systems USA (NYSE:FIX) rallied.

The Market Setting

The S&P 500 gained 44.98 points to a record 7,818.93, and the Nasdaq Composite closed at a record just under 27,600. The Dow Jones Industrial Average rose 253.38 points to 51,521.28, with Caterpillar (NYSE:CAT) among its top gainers. The Russell 1000, the broad gauge of US large and mid-sized companies, tracked the large-cap advance, while the small-cap Russell 2000 slipped to about 2,830.

Treasury yields eased, with the 10-year ending near 5.28. On the New York Stock Exchange, advancers outnumbered decliners 1,642 to 1,075.

Orders Data Will Show the Real Mix

For Regal Rexnord, the key question is how much data-center demand shows up in orders, compared with its more cyclical industrial and residential markets, when the company next reports. Investors will also monitor spending signals from large technology companies during Earnings season.