By CCN.com: The Dow whipsawed into the US trading session on Wednesday, shaking off a weak futures performance – and more bearish news for Boeing – to rise nearly 100 points, only to suddenly swing back into the red just half an hour later. The bitcoin price also made a strong entry, surging past the $4,000 mark to hit its highest level in nearly a week.
As of 10:04 am ET, the Dow Jones Industrial Average had lost 41.46 points. The index fell to 25,632.27 after surging past 25,750 shortly after the bell rang on Wednesday. The S&P 500 and Nasdaq also reversed early gains to post declines, with the former dropping 0.15 percent and the latter losing 0.12 percent.
On Tuesday, the Dow salvaged a 140.9 point rally after an afternoon stumble threatened to wipe away its gains. The index ended the session at 25,657.73 for a 0.55 percent increase. The S&P 500 and Nasdaq also made strides, climbing 0.72 percent to 2,818.46 and 0.71 percent to 7,691.52, respectively.
This morning, the Dow could face pressure from Boeing, its largest index component. On Tuesday afternoon, a Boeing 737 MAX 8 made an emergency landing in Florida after pilots encountered a “performance issue with one of the engines shortly after takeoff,” according to CNN.
While the Federal Aviation Administration claims the issue is unrelated to the automated stall system failure that’s believed to have caused the tragic Lion Air and Ethiopian Airlines crashes that collectively killed 346 people, the incident adds to the controversy surrounding the 737 MAX 8.
A US Senate subcommittee scheduled for Wednesday afternoon should further pressure Boeing stock. At 3 pm, lawmakers will hear testimony from federal aviation safety officials about how and why the 737 MAX 8 was certified as airworthy despite having an apparent critical design flaw.
Meanwhile, Boeing rival Airbus has capitalized on its competitor’s misfortune by ramping up its sales to Chinese airlines. Earlier this week, Airbus announced that it would ship 300 jets worth roughly $35 billion to China. Of those 300 planes, 290 are A320 model aircraft, which is a direct competitor to the embattled 737 MAX 8. China had previously planned to increase 737 MAX 8 imports to help the US reduce its trade deficit, but it reversed course after the Ethiopian Airlines crash this month.
Despite these woes, Boeing shares – which have dropped 15 percent over the past month – rose 0.4 percent during pre-market trading.
Outside of traditional markets, the bitcoin price has once again made a strong break past $4,000 as it seeks to slay a critical resistance line that has prevented it from establishing a new bull market.
On Wednesday, the bitcoin price jumped by 3.07 percent, peaking as high as $4,049 before ebbing back down to a present value of $4,024.
The move raised bitcoin to its highest mark since March 21, but the flagship cryptocurrency’s market share continued to crater as smaller assets stole the affections of crypto traders. Bitcoin dominance currently stands at 50.4 percent, down from nearly 54 percent in January.
EOS, the fifth-largest cryptocurrency, exploded by 12.2 percent on Wednesday, surpassing the $4.00 mark to reach a global average of $4.09. According to eToro Senioar Market Analyst Mati Greenspan, EOS has now eclipsed its 200-day moving average, which is a bullish technical indicator.
Bitcoin cash and stellar also assembled major rallies, climbing 8 percent and 6.68 percent, respectively, as the overall cryptocurrency market cap added $5.5 billion.
Last modified: July 2, 2020 8:13 PM UTC