Ford Motor Co's stock tumbled over 12% on Tuesday in its deepest one-day decline in over a decade after the automaker said inflation-related costs would be $1 billion more than expected in the current quarter and that parts shortages had delayed deliveries.
Ford's inflation troubles and FedEx's weak demand highlight the bind the Federal Reserve finds itself in ahead of the U.S. central bank's policy-making meeting on Wednesday.
The Fed is widely expected to hike rates by 75 basis points in its battle against decades-high inflation. Its aggressive monetary policy campaign has battered the U.S. stock market in recent weeks, with investors worried the Fed's measures could hobble the economy.Ford, which is set to report third-quarter results on Oct. 26, affirmed 2022 adjusted earnings before interest and taxes forecast of $11.5 billion to $12.5 billion.
It was unclear if chip and parts supply will normalize by the end of the year, Deutsche Bank's Rosner said.
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