Why Ford's Pulling the Whole Stock Market Down Tuesday
Stock market investors got a nice respite on Monday, as Wall Street was able to claw back some of the ground it had lost the previous week. However, it appeared on Tuesday morning that the bounce could be short-lived, as futures contracts on the Dow Jones Industrial Average (DJINDICES: ^DJI), S&P 500 (SNPINDEX: ^GSPC), and Nasdaq Composite (NASDAQINDEX: ^IXIC) had fallen by three-quarters of a percent an hour before the start of the regular trading session.
The Federal Reserve has been aggressive in its moves to tighten monetary policy and boost interest rates, with the goal of getting inflation under control. Consumers around the world have felt the pinch of higher prices for the goods and services they need, but it hasn't always been as clear what impact inflation has had on the business world. That came through a lot more clearly Tuesday morning after Ford Motor Company (NYSE: F) gave details about how the current macroeconomic environment is putting pressure on its auto business.
Ford shares were down nearly 5% in premarket trading as investors digested what the auto giant said about its likely financial performance for the third quarter of 2022. Although not all of the news was bad, investors nevertheless had to adjust some of their expectations about what Ford's results could look like for the rest of the year and beyond.
Source Fool.com
