Boeing Stock Is Under Pressure After A Fatal Crash In China
Previously, Boeing had significant problems with 737 MAX in China. After two crashes, China grounded the plane for more than two and a half years. China Eastern Airlines’ plane was not a 737 MAX, which will likely limit the stock’s downside in the near term.
“There are a lot of economic growth concerns,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group. “China is a big customer for U.S. tech. … The semiconductor industry does a lot of business there. But it’s also concerns with growth here as well.”
Tesla, which has a factory in Shanghai and counts China as a major market for its electric vehicles, was the biggest laggard on the Nasdaq Composite, closing down about 12.2%. The shares also came under pressure as its CEO and founder, Elon Musk, looked to close his proposed deal to buy Twitter for $44 billion.