Wall Street Slips as Mideast Tensions, Boeing Weigh

The U.S. stock market declined on Thursday because of escalating Middle Eastern tensions and the fatal Boeing aircraft accident that caused investor anxiety.

The Dow Jones Industrial Average decreased by 140 points to 42,725 while the S&P 500 declined by 0.09% and the Nasdaq dropped 0.2%. Boeing stock price dropped 4.7% after an Air India 787 Dreamliner crashed in Ahmedabad which resulted in more than 200 fatalities. The safety concerns about the company resurfaced after this incident.

The market displayed caution because of rising geopolitical risks. President Trump declared that U.S. personnel would be moved from the Middle East while stating Iran must never obtain nuclear capabilities. The Iranian government issued a warning that they would attack U.S. bases if nuclear negotiations ended without success.

The market participants expect additional details about the recently approved U.S.-China trade agreement. The agreement received support from Beijing but the lack of detailed information continues to create market uncertainty.

The embassy evacuations indicate that we might experience a turbulent period according to Kim Forrest of Bokeh Capital Partners.

The market remains uncertain because of foreign policy tensions and trade policy uncertainties and company-specific shocks which will determine upcoming Wall Street actions.