Why Ford Shares Are Getting Hammered Today

Ford Motor Company F shares, among several companies in the broader auto & auto components space, are trading lower by 7.33% to $11.37 Thursday morning amid overall market weakness. The Federal Reserve Wednesday afternoon raised its target fed funds rate by 75 basis points to a new range of between 1.5% and 1.75%, its largest interest rate hike in 28 years.

“Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures,” the Fed said in a statement… Read More

Following the Fed decision, the 10-year US Treasury yield has spiked, which has continued to pressure valuations in 2022. The 10-year Treasury yield hovered around a 5-year high of 3.495% Thursday morning before dipping to around the 3.398% level. 

When key interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lowers the value of the stock.

See Also: Federal Reserve Raises Interest Rates by 0.75%, Hikes Inflation Estimates

According to data from Benzinga Pro, Ford has a 52-week high of $25.87 and a 52-week low of $11.34.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In:
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!