Shares of 3M Co. MMM powered up 8.5% in midday trading Friday, toward their best one-day performance in three years, as part of a unanimous rally in the S&P 500’s SPX industrials sector. Bloomberg reported Friday that 3M has reached a tentative settlement of at least $10 billion with multiple cities over water pollution claims related to perfluoroalkyl and polyfluoroalkyl substances, known as PFAS. The Industrial Select Sector SPDR exchange-traded fund XLI climbed 2.7%, with all 77 equity components gaining ground. The sector’s second-biggest gainer was Caterpillar Inc.’s stock CAT, which shot up 7.6% toward the best day since it climbed 7.7% on Oct. 27, 2022. 3M shares were having their best day since their record 12.6% rally on March 24, 2020. The stocks were also the best performers in the Dow Jones Industrial Average DJIA , which powered up 619 points, or 1.9%, as investors cheered strong government employment data and the Senate’s passage of the debt-ceiling bill. The total price gains of 3M’s and Caterpillar’s stocks ($23.91) added about 158 points to the Dow’s price. 3M’s stock rally after it bounced 1.0% on Thursday, after closing Wednesday at the lowest price since Dec. 31, 2012, while Caterpillar’s stock closed Wednesday at a seven-month low.

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