The Dow Jones slightly recovered from a major drop during after-hours trading.
A tragic Boeing passenger plane crash in Iran could further rattle the equities market.
Rise of gold and the earnings bubble remain as risks towards the Dow.
The Dow Jones Industrial Average (DJIA) fell by more than 450 points at the day’s lowest point following Iran’s response to the U.S. Its recovery has been short-lived, however, and things may get even worse for the stock market.
#1: Boeing’s Tragic Crash in Iran
Reports from Bloomberg and CNBC confirmed that a Boeing 737 passenger plane headed to Ukraine crashed briefly after departure from Iran, leading to 176 casualties with no survivors.
It is the third tragic accident involving a Boeing plane within two years. The crashes in Indonesia, Ethiopia, and Iran led to 526 casualties.
Boeing has struggled to address the accidents over the past two years. Despite the firing of former CEO Dennis Muilenburg by the company, the criticism towards the aircraft manufacturer has not subsided.
In the past year, the Boeing stock fell by $440 to $337, by around 23.4%. As one of the biggest companies in the U.S., its decline translated to downward pressure on the Dow Jones throughout 2019.
In recent weeks, speculation that Berkshire Hathaway is set to invest in Boeing further fueled its recovery.
However, if preliminary reports are accurate and the Boeing passenger crashed due to a technical issue, it will cause the stock to rattle and add additional pressure to the Dow Jones.