Investor sentiment took a beating Monday after a 737 MAX 8 aircraft carrying 188 passengers, operated by Indonesian low-cost airline Lion Air, crashed near Jakarta. While the exact cause of the crash will be known only after the investigation, its sheer scale demands accountability. The ill-fated plane is the first ‘new 737 model’ to have crashed – the worst such incident in about three years.
The plane reportedly crashed into the sea shortly after taking off from Jakarta Monday morning. According to sources close to the matter, no one on board the plane could have survived. It was proceeding to the Pangkal Pinang city on the island of Bangka. Though the pilot made a request for returning to Jakarta after the take-off, the air traffic control lost contact with the plane soon.
The ill-fated plane is the first in the new 737 model to have crashed, the worst such incident in about three years
The selloff triggered by the accident wiped out several millions of dollars from Boeing’s market value, paring most the gains that came off after last week’s better-than-expected earnings report. The stock has been under pressure following reports that President Donald Trump is planning to impose a fresh round of tariffs on Chinese imports if the talks between Washington and Beijing fails.
“Boeing is providing technical assistance at the request and under the direction of government authorities investigating the accident,” said an official statement from the company. With a significant number of new orders in the pipeline, Lion Air is one among the most valued customers of Boeing.
Boeing shares opened Monday’s session higher but lost about 7% as trading progressed, marking the biggest intraday fall in about two-and-half years and defying the strong gains made by the Dow Jones Industrial Average. Earlier, the stock has climbed to an all-time high in the first week of October, but retreated in the following days.
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Shares of Tyson Foods Inc. (NYSE: TSN) plunged 9% on Monday after the company delivered mixed results for the third quarter of 2022. Revenues beat estimates while profits missed expectations.
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