Why Ford And GM Shares Are Falling Today

Ford Motor Company F and General Motors Company GM shares are trading lower. The move appears related to overall market weakness as a rise in yields and worse-than-expected earnings from Goldman Sachs weigh on stocks.

Shares of companies across sectors are trading lower after the 10-year US Treasury yield reached a two-year high, which has pressured valuations. The 10-year Treasury yield hit an intraday high of 1.85% Tuesday morning before dipping to around the 1.83% level. When interest rates rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.

See Also: Microsoft To Acquire Activision In $68.7B Deal: What Investors Need To Know

Ford's stock was trading about 2.7% lower at $24.51 per share on Tuesday at the time of publication. 

General Motors' stock was trading about 3.4% lower at $59.05 per share at the time of publication.