US Stock Market Move | Morgan Stanley downgraded Ford Motor Company (F.US) and General Motors Company (GM.US), causing their stock prices to fall.

On Wednesday, Ford Motor Company (F.US) fell over 4% to $10.41, while General Motors Company (GM.US) dropped over 5% to $45.435, with both companies being downgraded by Morgan Stanley. Morgan Stanley believes that America's Car-Mart, Inc. will face a more challenging situation, adjusting their view on the industry from "attractive" to "in line with expectations". Morgan Stanley lowered the target price for General Motors Company from $47 to $42, and downgraded their rating from "hold" to "sell"; for Ford, the target price was lowered from $16 to $12. Morgan Stanley points out that inventory at American dealerships is rising, which can often lead to continued pressure on new car prices. Additionally, affordability of vehicles remains poor, with average car payments increasing by about 40% compared to pre-COVID levels, while wages have only increased by nearly 20% during the same period.