Stocks were trading mixed on Monday in New York, with the Dow Jones Industrial Average pulling lower as shares of Boeing sold off. Uncertainty about the prospects for interest-rate cuts continued to weigh on the market. The Dow Jones fell around 0.4%, or 170 points, while the S&P 500 rose 0.2% and the tech-heavy Nasdaq was up 0.5%. This comes after all three major stock indexes broke a nine-week winning streak on Friday.
The decline in the Dow was largely attributed to the tumbling shares of Boeing. This came after US authorities grounded some of the company’s 737 Max 9 jets following a midair fuselage blowout. Other stocks were also affected, including Alaska Airlines and United Airlines, both of which operate the jet. Additionally, shares of fuselage maker Spirit AeroSystems sank more than 10%.
Overall, investors are taking a cautious approach after a challenging start to the year. The dwindling expectations for an early rate cut from the Federal Reserve, coupled with strong labor market data, have intensified the debate around the path of Fed policy.
Looking ahead, this week could bring a catalyst for the market. Earnings reports from big banks such as JPMorgan, Wells Fargo, and Bank of America are expected, along with a crucial reading on inflation. The CPI inflation reading is due on Thursday.
On a positive note, concerns about a looming government shutdown have been alleviated, as congressional leaders announced they have reached a $1.59 trillion spending deal. Meanwhile, oil prices fell more than 4% as Saudi Arabia cut key prices of crude supplies.
In other news, Boeing experienced a significant drop in stock prices after an incident involving one of its 737 MAX 9 jets. The Federal Aviation Administration grounded some of the jets over the weekend after an Alaska Airlines flight experienced a fuselage blowout. Shares of Spirit AeroSystems, which manufactures the fuselage for the jet, also fell. Analysts view this as a short-term challenge for Boeing, with the longer-term outlook remaining positive.
In conclusion, the stock market opened mixed on Monday after ending its nine-week winning streak. The Dow Jones Industrial Average saw a decline, while the S&P 500 and Nasdaq experienced modest gains. The grounding of Boeing’s 737 MAX 9 jets and uncertainties surrounding Fed policy continue to impact investor sentiment. Earnings reports from major banks and a reading on inflation are expected to provide further insight into the market’s direction.