Boeing Stock Drops After Dreamliner Crash, Just Weeks Following 15-Month High

Core Viewpoint - Boeing Co. is facing significant challenges following a recent crash of a Dreamliner 787-8, which has shaken investor confidence and raised safety concerns that the company had previously managed to mitigate [1][3]. Group 1: Recent Performance and Developments - Boeing's stock had recently reached a 15-month high, with shares rising over 13% year-to-date, driven by a recovery in aerospace, defense contracts, and increased production of the 737 MAX [1][2]. - The company resumed 737 MAX deliveries to China and secured a $96 billion deal with Qatar Airways, contributing to positive market sentiment [2]. Group 2: Impact of the Crash - The crash of the Dreamliner poses a threat to Boeing's fragile recovery, with the cause still under investigation [3]. - The Federal Aviation Administration (FAA) is maintaining strict oversight, capping monthly 737 MAX output at 38 units and inspecting every jet before delivery, which could be exacerbated by new safety concerns [4]. Group 3: Ongoing Risks - Structural risks remain, including tariff uncertainties, materials inflation, and a recovering aerospace supply chain, which could impact Boeing's operations [5]. - Despite a significant order backlog, the market's reaction to the crash indicates the volatility inherent in Boeing's recovery narrative [6].