What Happened?
Shares of aerospace and defense company Boeing (NYSE: BA) fell 9.5% in the afternoon session after President Trump announced "reciprocal tariffs" on all US imports, set at a minimum rate of 10%. Markets reacted negatively to the announcement, reflecting deep concerns among investors about the broader economic implications. The tariffs were likely seen as a significant threat to global trade flows, with the potential to slow economic growth, drive up consumer prices, and spark retaliatory measures.
Wedbush analyst Dan Ives captured the prevailing market anxiety, stating, "We would characterize this slate of tariffs as 'worse than the worst case scenario' the Street was fearing." His comment highlighted how the scope and severity of the tariffs far exceeded Wall Street's expectations, adding a new layer of uncertainty for businesses and investors.
The shares closed the day at $150.91, down 10.5% from previous close.
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What The Market Is Telling Us
Boeing’s shares are not very volatile and have only had 5 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 13 days ago when the stock gained 5.7% on the news that the company announced that it secured the contract to produce the next generation of fighter jets for the U.S. military, successfully outbidding competitor Lockheed Martin. The contract, known as Next Generation Air Dominance, or NGAD, was to help build jets (F-47) that will accompany a future fleet of drone aircraft to protect the US against its adversaries. According to the press release, the contract was worth an estimated $20 billion.
Boeing is down 12.1% since the beginning of the year, and at $151 per share, it is trading 21.1% below its 52-week high of $191.42 from June 2024. Investors who bought $1,000 worth of Boeing’s shares 5 years ago would now be looking at an investment worth $1,213.
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