GM Shares Rally As Fed Officials Signal December Rate Cut

General Motors Co (NYSE:GM) stock is trading higher Friday afternoon, capitalizing on a sharp dovish pivot from Federal Reserve officials that has recalibrated market expectations for a Dec. 10 interest rate cut. Here’s what investors need to know.

• GM stock is racing ahead of the pack. Get the scoop here.

What To Know: Following comments from New York Fed President John Williams and Governor Stephen Miran regarding cooling labor markets, the CME FedWatch tool now indicates a 74% probability of a rate reduction, up significantly from just 25% a day prior.

This shift is a specific catalyst for GM, a consumer discretionary heavyweight whose core business is highly sensitive to borrowing costs. A decline in Treasury yields, with the 10-year dipping to 4.06%, directly benefits GM's financing arm, GM Financial.

Lower rates reduce monthly payments for consumers, a critical factor for moving GM's high-margin, big-ticket inventory like the Chevrolet Silverado and GMC Sierra, which rely heavily on auto loans.

Furthermore, Miran's stance that inflation risks are “overstated” provides relief for GM's capital-intensive operations. A lower rate environment reduces the cost of servicing debt required for GM's massive ongoing investment in its Ultium EV battery platform and factory retooling.

By prioritizing maximum employment, the Fed's pivot signals a soft landing approach, protecting the consumer purchasing power essential for sustaining GM’s vehicle sales volume.

Benzinga Edge Rankings: Reinforcing this bullish activity, Benzinga Edge data highlights the stock's technical strength with a robust Momentum score of 82.78, accompanied by positive price trends across short, medium, and long-term horizons.

GM Price Action: General Motors shares closed up 2.66% at $69.85 at the time of publication on Friday. The stock is approaching its 52-week high of $72.87, according to Benzinga Pro data.

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How To Buy GM Stock

By now you're likely curious about how to participate in the market for General Motors – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy “fractional shares,” which allows you to own portions of stock without buying an entire share.

In the case of General Motors, which is trading at $70.09 as of publishing time, $100 would buy you 1.43 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to “go short” a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

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