Boeing’s Comeback Sparks Triple-Digit Rally for the Dow; S&P 500, Nasdaq Close at Five-Month Highs
The Dow joined the broader U.S. stock market in positive territory Friday after Boeing Co (BA) stemmed a brutal week-long skid on news that the airline manufacturer was rolling out much-needed safety upgrades in the next ten days.
Dow Jones S&P 500, Nasdaq in Positive Territory
After a tepid morning session, the Dow Jones Industrial Average rallied as much as 218 points in afternoon trade, where it joined the S&P 500 and Nasdaq Composite in positive territory. By the end of trading, the Dow had gained 138.12 points, or 0.5%, to 25,848.06.
The broad S&P 500 Index of large-cap stocks rose 0.5% to 2,822.49, a new five-month high. Technology stocks rose 1.2% on average, with the bulk of the gains concentrated in semiconductors and related services. Shares of financials and consumer discretionary companies rose 0.5% on average.
Surging tech shares lifted the Nasdaq Composite Index to gains of 0.8% where it closed at 7,688.53. In doing so, the Nasdaq joined the S&P 500 at five-month highs.
Shares of Boeing rose 1.7% Friday after France’s AFP news agency reported that the aerospace and defense contractor was planning to implement a new software upgrade on its fleet of MAX 737 planes. The upgrades, which are being rolled out in roughly ten days, will address the airline’s automatic stall-prevention system, which was the cause of the Lion Air crash in Indonesia last October.
It’s not clear whether the same misfire was responsible for the Ethiopian Airlines disaster that claimed 157 lives on Sunday. An investigation is currently ongoing in Paris. As CCN reported, the Ethiopian flight was configured to dive based on a preliminary analysis of the plane’s jackscrew.
In the aftermath of Sunday’s crash, dozens of countries have grounded Boeing’s MAX 737 fleet. On Thursday, President Donald Trump confirmed that the Federal Aviation Administration (FAA) was suspending all MAX 737 planes from entering U.S. airspace.
Trump Provides Update on U.S.-China Trade Talks
President Trump told reporters Thursday that we’ll know in the next three or four weeks about a possible U.S.-China trade deal. The update followed earlier reports indicating that negotiations were on hold for the remainder of the month.
“We’ll have news on China. Probably one way or the other, we’re going to know over the next three to four weeks,” Trump said during a White House St. Patrick’s Day reception.
China has been “very responsible and very reasonable,” the president added without providing details.
Both sides made progress last month over two rounds of talks held in Beijing and Washington, with The Wall Street Journal even declaring that a new deal could be imminent. The major sticking points continue to be China’s industrial policy and adequate protections for U.S. intellectual property.
“If that one gets done, it will be something that people will be talking about for a long time,” Trump said.
Featured image courtesy of Shutterstock. Chart via Stockcharts.com.