Dow Jones Falls to 2-Week Low as Boeing Drags, Nasdaq Boosted by Tech Giants

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In Monday’s Wall Street trading session, the Dow Jones Industrial Average experienced a decline to a two-week low, primarily influenced by a significant drop in Boeing shares due to the grounding of some of its jets. Despite this, the S&P 500 and Nasdaq Composite saw gains as megacap stocks and chip-related shares rebounded.

FILE PHOTO: A man wearing a protective face mask walks by 14 Wall Street, as the global outbreak of the coronavirus disease (COVID-19) continues, in the financial district of New York, U.S., November 19, 2020. REUTERS/Shannon Stapleton/File Photo – Investing.com

As of 9:52 am Eastern Time, the Dow Jones Industrial Average was down 0.50%, or 185.79 points, at 37,280.32. Meanwhile, the S&P 500 increased by 0.25%, or 11.73 points, reaching 4,708.97. The Nasdaq Composite rose by 0.72%, or 104.25 points, to 14,628.33.

Boeing’s shares experienced a significant drop of 9.1% after the company was compelled to ground some of its 737 MAX fleet due to an incident involving an Alaska Airlines panel mid-flight.

The opening numbers showed the Dow Jones falling by 0.37% to 37,327.37, the S&P 500 opening 0.14% higher at 4,703.70, and the Nasdaq Composite gaining 0.28% to 14,564.47.

The 10-year treasury yield slipped to 4.02% from the late Friday rate of 4.05%.

In European markets, stocks saw a decline with the pan-European STOXX 600 down 0.3% at 0915 GMT. Britain’s FTSE 100 lost 0.4% at 7,661.55 points, France’s CAC 40 fell 0.2% at 7,404.39, and Germany’s DAX slipped 0.1% at 16,585.94.

Asian markets also witnessed fluctuations as Hong Kong’s Hang Seng Index dropped 1.9% to 16,224.45, and China’s Shanghai Composite fell 1.4% to 2,887.54. Japan’s Nikkei 225 was closed for a holiday, while South Korea’s Kospi lost 0.4% at 2,567.82, Australia’s S&P/ASX 200 dropped 0.5% at 7,451.50, and Taiwan’s Taiex gained 0.3%. The SET in Bangkok, however, was 0.6% lower.

Oil prices experienced a decline of over 4% on Monday, attributed to Saudi Arabia’s production cuts and increased OPEC output. Brent crude slid 4.2% to $75.38 a barrel, and US West Texas Intermediate crude futures lost 4.7% to $70.29.

Gold prices fell on Monday due to dollar strength and elevated treasury yields. Spot gold dropped more than 1% to $2,023.49 per ounce, while US gold futures fell 0.9% to $2,029.80 by 9:41 am ET.

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