Shares of Boeing Co. BA, -5.33% on Monday cut more than 300 points from the Dow Jones Industrial Average, following a fatal crash of a 737 plane in Ethiopia that has resulted in China grounding all of the airplanes of that model, according to reports. Boeing’s stock, a component of the blue-chip Dow industrials index, was down roughly 12% or $50.05, with that decline, slashing about 340 points from the Dow at the open. A $1 move of any of the Dow’s 30 components equates to a decline of 6.8 points in the Dow DJIA, +0.79% which is a price-weighted index rather than market-capitalization weighted like the S&P 500 index SPX, +1.47% and the Nasdaq Composite Index COMP, +2.02% The decline in Boeing’s shares come less than 48 hours after a 737 MAX 8 Ethiopian Airlines jet crash, resulting in the death of 157 people, with that tragedy coming about six months after a separate crash involving another Boeing 737 MAX 8. The Civil Aviation Administration of China cited the crash of an Indonesian Lion Air jet in October in its decision to ground all 96 of its Boeing 737s, according to reports. Most recently, the Dow was down 162 points, while the S&P 500 index SPX, +1.47% advanced 0.5% to 2,756 and the Nasdaq Composite Index COMP, +2.02% rose 0.8% to 7,464.
See Full Story Stocks snap 5-day losing streak as tech shares rally
U.S. stocks snap a five-day losing streak to close higher Monday as technology shares rallied, offsetting some of the gloom from Boeing Co.’s woes after the second deadly crash in about six months involving the company’s 737 Max 8 aircraft.
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