The Dow Jones Industrial Average lurched lower on Monday afternoon, erasing a triple-digit gain and placing its three-day winning streak at risk.
Dow Reverses Triple-Digit Gain, Briefly Swerves Into Decline
The Dow had climbed as high as 26,900.83 during the morning session, leaving the stock market’s bellwether index less than 500 points away from setting a new all-time high.
However, the DJIA swerved lower heading into midday, briefly sliding into decline before bouncing back above its previous session close. As of 2:01 pm ET, the Dow had gained 18.55 points or 0.07%. The index last traded at 26,816.01.
The S&P 500 and Nasdaq also turned negative – and stayed there – falling 0.11% to 2,975.27 and 0.41% to 8,069.82.
Exploding Boeing Doors Weight on DJIA’s Largest Stock
There was no clear catalyst for the market’s downward swing, but the Dow’s bull case was not helped by weakness in its most heavily weighted stock: Boeing.
The US aerospace giant abruptly halted testing of its 777X aircraft over the weekend, citing an “issue” during the plan’s final load testing. According to the Seattle Times, the 777X test model’s cargo door “exploded outward” during a high-pressure stress test on the ground.
The 777X had already been delayed due to issues with its GE-9X engine, forcing it to remain grounded until 2020. With testing now suspended indefinitely, it’s unclear when the 777X will finally enter service.
That’s terrible news for Boeing, which continues to suffer from the ongoing 737 MAX scandal.
BA shares fell 0.9% to $359.58.
Other major Dow stocks reporting significant declines included McDonald’s (0.7%), Microsoft (1.6%), Travelers Companies (2.2%), and Visa (3.2%).
Click here for a live Dow Jones Industrial Average price chart.
Last modified: September 23, 2020 1:00 PM