** Caterpillar CAT.N shares rise 2.6%, while Deere DE.N up 1.6% in early trading

** U.S. Federal Reserve Chair Jerome Powell on Friday pointed to a possible rate cut at the central bank's September meeting

** Higher interest rates has prompted a slowdown in U.S. construction spending and led customers to delay large capital investments

** Including session moves, CAT up 18.5%, DE up 16.8% YTD

(Reporting by Utkarsh Shetti in Bengaluru)

((UtkarshUmesh.Shetti@thomsonreuters.com;))