What Happened?
Shares of automotive manufacturer Ford (NYSE: F) fell 7% in the afternoon session after reports highlighted the severe, long-term impact of a fire at a key aluminum supplier's plant, raising concerns about significant production disruptions.
The fire, which happened on September 16 at a Novelis facility in Oswego, New York, damaged the plant's hot mill. This part of the facility is a crucial source of aluminum for Ford's highly profitable F-Series pickup trucks. The market reacted to news that the plant's operations were not expected to restart until the first quarter of 2026, threatening to disrupt business for months.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Ford? Access our full analysis report here.
What Is The Market Telling Us
Ford’s shares are not very volatile and have only had 7 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 11 days ago when the stock gained 3.4% on the news that a key inflation data aligned with forecasts, bolstering hopes for continued interest rate cuts from the Federal Reserve. The Personal Consumption Expenditures (PCE) price index, the central bank's preferred gauge of inflation, showed a slight year-over-year increase in August but did not surprise economists. This report was met with relief on Wall Street, as it suggests inflationary pressures remain contained, giving the Federal Reserve more leeway to continue its monetary easing policy. Investors interpreted the news as a positive sign that the Fed can support the economy without risking runaway inflation. The positive sentiment helped the major indices claw back some of the losses from a recent three-day slide, with stocks rising across various sectors.
Ford is up 23.1% since the beginning of the year, and at $11.87 per share, it is trading close to its 52-week high of $12.70 from October 2025. Investors who bought $1,000 worth of Ford’s shares 5 years ago would now be looking at an investment worth $1,643.
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