General Motors Shares Rally As Falling Crude Boosts Outlook For Auto Demand

General Motors Co (NYSE:GM) shares are trading higher Monday afternoon after oil prices plunged following President Donald Trump’s announcement of a five-day pause on U.S. strikes against Iranian energy infrastructure, easing fears of a deeper energy shock and improving the outlook for automakers. Here’s what investors need to know.

• General Motors stock is among today’s top performers. Why are GM shares rallying?

Falling Oil Prices Could Support GM Demand

GM stock appears to be benefiting from the sharp drop in crude because lower oil prices can directly improve consumer affordability and sentiment around vehicle purchases.

West Texas Intermediate crude fell more than 8% to about $90.10 a barrel, while Brent dropped nearly 8% to roughly $103.31 after Trump said the U.S. had held “very good and productive conversations” with Tehran and would postpone attacks on Iranian energy assets for five days, pending further discussions.

Lower Fuel Costs May Improve Vehicle Affordability

That backdrop is potentially supportive for GM for a few …

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