Reports that it was due to a technical issue seemed to calm fears, though. But it appears that traders’ sigh of relief may have been premature as new reports suggest the cause of Iranian plane crash is still unknown.
Ukraine’s Iranian Embassy issued a statement soon after the crash, saying an attack had been ruled out. That statement has since been replaced with a letter saying it’s too early to draw conclusions.
The group pointed to photos of the crash site, saying they,
show clear projectile holes in the fuselage and a wing section. Whether that projectile was an engine part, or a missile fragment is still conjecture.
The OPS noted that from a risk assessment standpoint,
[They] would recommend the starting assumption to be that this was a shootdown event, similar to MH 17 – until there is clear evidence to the contrary.
The group also pointed out that the cause of the crash isn’t likely to be made clear anytime soon.
The current political climateIn Iran means Boeing probably won’t have answers for some time. Ali Abedzadeh, the head of Iran’s Civil Aviation Organization, has been quoted as saying Iran refuses to hand over the plane’s “black box” to Boeing.
In that case, the US stock market will likely see even larger swings in the days ahead as instability in the region continues to wreak havoc on investor confidence.
The market is unlikely to have closure on the incident as the tension between Iran the US keeps the two from working together to determine the cause of the crash.
Rhetoric from both sides over the next few days will likely cause Boeing stock as well as the Dow itself to yo-yo between what traders perceive to be good and bad information.
Disclaimer: This article represents the author’s opinion and should not be considered investment or trading advice from CCN.com.