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Boeing stock plunges after Ethiopia crash, sending Dow lower

AFP  |  New York 

Tumbling shares in US giant on Monday tore a hole in the Industrial Average, sending the benchmark index into the red for a sixth day.

About five minutes into the day's trading, shares were down 11.7 percent at USD 373.23 following the most recent crash of one of its aircraft in

The Dow fell 153.81 points to 25,319.42, but the broader S&P 500 rose 0.3 percent to 2,758.27 and the tech-heavy Nasdaq was up an even stronger 0.7 percent at 7,474.61.

The fatal crash of the Ethiopian Flight ET302 -- the second involving a 737 Max 8 in five months -- caused in three countries to ground all flights involving the popular jet and cast fresh safety concerns on the

Shares in Southwest sank 2.12 percent while lost 0.2 percent, gave up 0.8 percent.

said Boeing's impact on the Dow was not indicative of the performance of the wider market.

"The Industrial Average is a price-weighted average, and it just so happens that Boeing is its highest-priced component, which means it is going to have some outsized influence on its performance," he wrote.

Shares in maker Apple, which gained 2.4 percent, were likely to offset Boeing's downward pressure after of America analysts upgraded the company's stock, O'Hare said.

The Commerce Department meanwhile reported US had recovered slightly after a dismal December.

Investors also likely were comforted by the latest public remarks from Federal Reserve Jerome Powell, who told the weekly television broadcast the central was likely to be patient before raising interest rates again.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 11 2019. 20:58 IST