Ford and Stellantis Stocks Climb on Trump’s Pledge — Is the Rally Just Beginning?
US auto stocks had a nice day, with Stellantis and Ford stock prices surging around 5% as Pres. Trump offered tariff relief for US car...
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US auto stocks had a good day. President Trump’s offer of tariff relief for US automakers caused the stock prices of Ford and Stellantis to rise by almost 5%.
Despite weakness in tech, the shares of US automakers saw some decent gains today which helped push the major indices—including the Nasdaq, S&P 500, and DOW Jones Industrial Average, to close higher too, reflecting broader market resilience.
U.S. Indices Close Higher Despite Mixed Sector Performance
Dow Jones Industrial Average gained +312 points (+0.78%), closing at 40,524.79
S&P 500 advanced +42.61 points (+0.79%) to end at 5,405.97
Nasdaq Composite climbed +107.03 points (+0.64%), finishing at 16,831.48
Russell 2000 (small caps) outperformed, rising +20.67 points (+1.11%) to 1,880.87
Despite broad gains in headline indices, market breadth was uneven. Small-cap stocks led the charge, indicating potential investor interest beyond the megacaps. However, sector-level divergence revealed that not all corners of the market shared in the optimism as the decline in the tech stock below shows.
Ford Tests Technical Resistance as Political Support Boosts Sentiment
Among the day’s standouts was Ford (F), which has been stuck in a downtrend since July of last year, benefitting from president Trump’s comments on Auto tariff relaxation. On the weekly chart, the 20-week simple moving average has acted as persistent resistance, capping every attempt by buyers to turn the tide. That dynamic may be changing, however, as recent buying momentum has brought the stock right up against that level, hinting at a possible breakout.
Ford Stock Chart Weekly – Testing the 20 SMA
Ford’s gains were fueled in part by political headlines. President Trump’s remarks earlier in the day suggested the administration was seeking a solution for automakers facing logistical challenges in relocating operations from Canada and Mexico back to the United States. This nod of support to domestic manufacturers was well received by investors. Ford’s stock jumped more than 5% intraday before settling 4% higher at $9.72.
Adding to the positive sentiment was Ford’s latest marketing campaign, “From America, For America,” which extends employee pricing across much of its vehicle lineup through early June. The campaign is aimed at driving a second-quarter sales rebound after a stretch of lackluster performance in recent months. Sentry Ford in Massachusetts, just days ago, saw its best day in months after this campaign was announced.
Stellantis Rebounds Despite Downgrade
Shares of Stellantis, the parent company of Chrysler, also rebounded after a rocky start. In order to give automakers more time to restructure their intricate supply chains, US President Donald Trump hinted on Monday that he would temporarily lift the tariffs he had previously placed on the industry, which helped the STLA stock most of all.
The stock had been under pressure earlier in the session, falling as much as 1.5% following a UBS downgrade. However, sentiment quickly shifted, and the stock reversed course to finish nearly 5% higher, aided by broader optimism around U.S. auto policy and the sector’s resilience in the face of macroeconomic headwinds.
Outlook: Political Tailwinds Help Automakers Navigate Market Volatility
Although uncertainty surrounding tariffs continues to cloud the outlook for some sectors, the automotive industry appears to be finding firmer ground. Renewed political support for domestic production, aggressive promotional strategies, and surging EV demand are helping automakers like Ford and GM gain investor favor even as tech stocks wobble.
If the current trend holds and technical resistance levels are broken, the auto sector may be poised for a longer-term recovery—especially if tariff policy continues to tilt in its favor, with the Ford stock expected to regain the $10 level soon. Meanwhile, traders will remain on alert for new developments out of Washington and Beijing, as these headlines will likely continue to drive sector-specific rotation in the weeks ahead.
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