The Ford stock market, bond market and bond prices all rallied Tuesday after the Federal Reserve said it would cut rates and lift its benchmark interest rate for the first time in nearly two years.
The rally is the first since late last month when the Fed raised its benchmark rate from its record low of 0.25 percent to a range of 0% to 0.5 percent.
It is also the first rate hike since the Fed increased its benchmark target for the economy from 2% to 2.25%.
“The rally has been significant and has continued throughout the week.
There has been a lot of movement in bond prices and stock prices,” said Paul Goldberger, an analyst at Credit Suisse in New York.
“It has been somewhat disappointing for the market in terms of some of the sentiment, but that is likely due to the fact that the Fed has already cut its target for growth from 2 percent to 2 percent.”
Goldberger said that since the market rallied, Ford’s stock price is up nearly 80%.
“It is a big rally and has been substantial,” Goldberger said.
“There is a lot going on in the market.
The rally has come about at the expense of the Fed.”
Ford shares were up about 11% in after-hours trading on the New York Stock Exchange, trading as high as $54.50 on Tuesday.
They were also up more than 12% in the last three trading days.
Ford has fallen sharply in the wake of the announcement.
The company has lost about $1.2 billion in the past six months.
The company said it will cut a total of 3,600 jobs by the end of next year and close nearly half of its U.S. assembly plant in Kentucky.
The stock is down more than 30% since June.
Ford said its production was at an all-time high in June and has delivered more than 300,000 vehicles a day since the start of the year.
It will also be selling some of its vehicles, including the F-150 pickup truck, the Fords Sport Utility vehicle and the F150 pickup, for scrap.
Ford said the scrap sales will not reduce its revenue and that it expects the company to be profitable in fiscal 2019.
Goldberger says Ford is not the only automaker in the auto industry that is in a financial squeeze.
GM has been struggling to keep up with the production of the Chevy Cruze pickup and has also been struggling with low gas prices.
Goldberg said Ford is in the same situation that other automakers are in.
“The company is in an incredibly tough position,” he said.
The Fed cut its benchmark overnight interest rate from 0.75% to a record low.
The rate will remain at 0.50% until the end