Stocks open mixed as Boeing plunges


Stocks traded mixed on Monday, with the Dow pulling lower as Boeing (BA) shares sold off and uncertainty about the prospects for interest-rate cuts continued to weigh on markets.

The Dow Jones Industrial Average (^DJI) sank around 0.4%, or 170 points. The S&P 500 (^GSPC) rose 0.2%, and the tech-heavy Nasdaq (^IXIC) was up 0.5%, after all three major stock indexes broke a nine-week winning steak on Friday.

Dow component Boeing’s shares tumbled as much as 9% after US authorities grounded some 737 Max 9 jets in the wake of a midair fuselage blowout. The incident hit other stocks, with shares in Max 9 operators Alaska Airlines (ALK) and United Airlines (UAL), which operate the jet, losing ground. Fuselage maker Spirit AeroSystems’s (SPR) shares sank more than 10%.

Overall, investors are treading carefully after stocks took a bruising in the first days of 2024 thanks to dwindling expectations for an early rate cut from the Federal Reserve. Strong labor market data, including a hotter-than-expected December jobs report, have intensified the debate around the path of Fed policy.

Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards

This week could bring a catalyst for the market, with earnings reports from big banks and a crucial reading on inflation ahead. The CPI inflation reading is due Thursday, while JPMorgan (JPM), Wells Fargo (WFC), and Bank of America (BAC) will kick off the fourth-quarter earnings season.

One risk is potentially off the table after congressional leaders said Sunday they have reached a $1.59 trillion spending deal aimed at averting a looming government shutdown. The benchmark 10-year Treasury yield (^TNX) hung on above 4% after last week’s gains.

Meanwhile, oil prices were fell more than 4% as investors absorbed Saudi Arabia’s decision to cut key prices of crude supplies to all regions, including its main Asia market.

Live1 update

  • Stocks open mixed after snapping 9-week winning streak

    Stocks opened mixed on Monday after ending their 9-week winning streak last week.

    The Dow Jones Industrial Average (^DJI) fell 0.4%, or 150 points, while the S&P 500 (^GSPC) rose 0.2%. The tech-heavy Nasdaq (^IXIC) was up 0.4%.

    Last week hotter-than-expected jobs data raised investors questions on when the Federal Reserve was likely to begin cutting interest rates this year.

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