What Happened?
Shares of aerospace and defense company Boeing (NYSE: BA) fell 3.6% in the afternoon session after investors took some profits off the table as markets awaited signals on future monetary policy from the Federal Reserve's Jackson Hole symposium later in the week. The downturn in the market was largely attributed to a significant sell-off in megacap tech and chipmaker shares. Nvidia, Advanced Micro Devices (AMD), and Broadcom all saw notable drops, dragging down the VanEck Semiconductor ETF. Other major tech-related companies like Tesla, Meta Platforms, and Netflix were also under pressure. A key reason for this trend is that much of the recent market gains have been concentrated in the "AI trade," which includes these large technology and semiconductor companies. So this could also mean that some investors are locking in some gains ahead of more definitive feedback from the Fed.
The shares closed the day at $224.99, down 3.2% from previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Boeing? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Boeing’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 21 days ago when the stock dropped 3.8% on the news that investors focused on production delays and potential labor disputes despite reporting better-than-expected second-quarter revenue and a smaller loss. The company posted quarterly revenue of $22.7 billion and a core loss per share of $1.24, both beating analyst forecasts. However, positive sentiment was tempered by significant headwinds. Boeing announced that the certification for its new 777-9 and 737 MAX 7 and 10 models was delayed until 2026, a notable setback. Adding to investor concerns, workers rejected a new contract, raising the possibility of strikes that could disrupt production. These developments overshadowed the improved jet delivery numbers, as analysts had already been revising their earnings expectations downward prior to the report.
Boeing is up 31% since the beginning of the year, and at $224.79 per share, it is trading close to its 52-week high of $236.41 from July 2025. Investors who bought $1,000 worth of Boeing’s shares 5 years ago would now be looking at an investment worth $1,330.
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