U.S. Stocks Fall Amid Boeing 737 Drama
Stocks pull back in volatile trading session.
The U.S. stock market traded lower on Tuesday, with Boeing leading the decline over reports of further regulatory delays to its Max 737 fleet.
All of Wall Street’s major indices reported losses in the first trading session of the week. The Dow Jones Industrial Average (DIA) declined 151.45 points, or 0.5%, to 29,196.65. The blue-chip index was off more than 200 points earlier in the day.
The broad S&P 500 Index (SPY) declined 0.3% to close at 3,320.84. Losses were mainly concentrated in energy, industrials and materials stocks. On the opposite side of the ledger, real estate, utilities and consumer staples companies reported gains.
Meanwhile, the technology-driven Nasdaq Composite Index (QQQ) edged down 0.2% to finish at 9,370.81.
A measure of implied volatility known as the CBOE VIX (VXX) surged by as much as 10.2% on Tuesday before paring gains later in the session. The so-called ‘investor fear index’ would eventually settle at 12.82, having gained 6%.
VIX trades on a scale of 1-100, where anything below 20 signals complacency in the U.S. stock market.
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Dow blue-chip Boeing Co (BA) declined by as much as 5.8% amid reports that its Max 737 fleet could take another six months to return to the sky. Last week, Boeing’s engineers identified more issues with its forthcoming software update, complicating its timeline for regulatory approval.
Boeing’s stock price bottomed at $305.76, its lowest since December 2018.
The Final Word: Despite some early-week volatility, stocks continue to trade near record highs. That’s likely to continue as the Federal Reserve maintains ample liquidity in the market.