By
Chimamanda U. Martha
May 10th, 2024
The U.S. stock market made positive moves after major correction last week. Airline stocks lead the way as the U.S. Federal Aviation Administration starts a three-day compliance test for Boeing’s 737 Max.
After taking a heavy beating last week, stock markets started on a positive note on Monday. Yesterday, June 29, Dow Jones (INDEXDJX: .DJI) surged 580 points or 2.3% higher giving a closing at 25,595.80.
Other indices also ended on a positive note with the S&P 500 (INDEXSP: .INX) surging 1.5% and the Nasdaq Composite (INDEXNASDAQ: .IXIC) ending the day with 1.2% gains. Moreover, yesterday’s gains have put the S&P 500 in a net positive territory for this month.
Positive momentum in the tech space contributed to Dow’s Monday rally. Apple was one of the biggest contributors surging 2.3% in a single day. On yesterday’s closing, Apple Inc (NASDAQ: AAPL) was trading at $361.78. Moreover, the Facebook Inc (NASDAQ: FB) stock also jumped 2% after a major crash last Friday.
Facebook is currently going through a tough time as big organizations have paused their advertisements on the platform. These companies have alleged that Facebook has failed to control hate speech and disinformation spread. The FB stock price came crashing down last week due to this.
Airline Stocks Surges as Boeing Resumes Tests for Its 737 Max
On Monday, shares of airline companies surged as Boeing commences a three-day certification test campaign for its 737 Max. Boeing has been currently undergoing its first-ever corporate crisis in its history. Since March 2019, Boeing’s fast-selling 737 Max saw two major crashes killing 346 people in Indonesia and Ethiopia.
Boeing has to stop all its flights on the 737 Max following an investigation from the Department of Justice and the Congress. Now, pilots and crew members of the U.S. Federal Aviation Administration have started the test campaign for the Max 737 from Monday.
Shares of The Boeing Company (NYSE: BA) jumped a whopping 14.4% going close to $200. At Monday closing, the BA stock was trading at $194.49. Moreover, the stock of Southwest Airlines Co. (NYSE: LUV) also jumped nearly 10% after Goldman Sachs upgraded it to a buy from sell.
On the other hand, the COVID-19 cases continue to keep investors jittery and on the edge. Last weekend, the U.S. reported a massive surge in the positive cases in Florida and Texas. Besides, last Friday, the U.S. also registered its biggest spike in a single day with over 45,000 reported cases. It will interesting to see how the markets perform from these levels.