Why Boeing Stock Just Dropped

Source The Motley Fool

Key Points

  • Boeing says a recent software update introduced a "glitch" into its 737 MAX autopilot.

  • Boeing says there is no "safety issue" involved.

  • The FAA and airlines aren't so sure.

  • These 10 stocks could mint the next wave of millionaires ›

On a red day for the stock market, Boeing (NYSE: BA) stock is performing worse than most.

Shares of America's most famous plane-maker tumbled 4.8% through 11:10 a.m. ET Monday after The Wall Street Journal reported that Boeing has identified a new "software glitch" on its 737 MAX airliners "that could cause an automated navigation feature to fail."

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

Boeing 737.

Image source: Getty Images.

Boeing's bad news

WSJ reports that the glitch relates to the airplane's autopilot function, which may fail to perform as intended when a pilot misses a first approach on landing and inputs a new flight path to try again -- requiring the pilot to land the plane manually instead.

Boeing denies that the glitch poses any "safety risk," but is already working on a patch regardless. The Federal Aviation Administration is also looking into the issue.

How bad is this for Boeing?

As the Journal reports, at least two big Boeing customers, Southwest Airlines and United Airlines, have told Boeing they won't accept delivery of any new 737 MAX airplanes with the buggy software installed.

The good news is that the glitch was apparently only introduced in the most recent software update, and one temporary fix would be to reinstall the previous software version -- sans glitch. A bigger issue may be what to do with the 2,422 Boeing 737 MAX 8 and 9 models already flying around the world, some of which may have the flawed software and some of which may not yet have the software update installed.

Boeing is hoping to get the software figured out and a patch issued by "early 2028," so investors can expect this issue to linger awhile longer. Fingers crossed that Boeing is right, there's no "safety risk" in the meantime -- and nothing bad happens that can be traced to this now-known problem.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 937%* — a market-crushing outperformance compared to 214% for the S&P 500.

They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.

See the stocks »

*Stock Advisor returns as of September 28, 2026.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boeing. The Motley Fool recommends Southwest Airlines. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
October hike odds climb toward 60% as Goldman and BofA both flip — what Warsh's "dose of accommodation" really changedRate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
Author  Irene Q.
Sep 23, Wed
Rate futures now price roughly 55% to 62% for a 25bp hike at the October 27-28 FOMC, up from about 30% before Chair Warsh's post-meeting framing that the Fed is merely "removing some accommodation." Goldman Sachs has added an October hike to its forecast and Bank of America now sees moves in both October and December. Here is the repricing, the language behind it, and the two data points that decide it.
placeholder
US input costs rose at the fastest pace in four years — the September flash PMI beat is an inflation story, not a growth storyUS September flash PMIs came in far above expectations, with the composite at 58.4, a five-year high. But the detail that moved markets was input cost inflation at its fastest since October 2022, driven by fuel, transport and supply shortages. Brent is back above $100 and the 10-year Treasury yield has hit its highest since 2007.
Author  Suzie
Sep 24, Thu
US September flash PMIs came in far above expectations, with the composite at 58.4, a five-year high. But the detail that moved markets was input cost inflation at its fastest since October 2022, driven by fuel, transport and supply shortages. Brent is back above $100 and the 10-year Treasury yield has hit its highest since 2007.
placeholder
Brent edges toward $99 as Trump rejects Iran's Hormuz proposal — why the war-risk premium won't rebuildBrent crude rose 0.92% to $98.51 and WTI gained 1.15% to $93.51 after President Trump rejected Iran's seven-day proposal to reopen the Strait of Hormuz. But both benchmarks remain about 12% below their early-September highs, because supply never actually stopped. Hormuz flows ran at 33.7 million barrels this week, in line with the prior week, and Saudi Arabia's East-West pipeline restarted on September 22.
Author  Suzie
18 hours ago
Brent crude rose 0.92% to $98.51 and WTI gained 1.15% to $93.51 after President Trump rejected Iran's seven-day proposal to reopen the Strait of Hormuz. But both benchmarks remain about 12% below their early-September highs, because supply never actually stopped. Hormuz flows ran at 33.7 million barrels this week, in line with the prior week, and Saudi Arabia's East-West pipeline restarted on September 22.
placeholder
Four jobs reports in five days: what JOLTS, ADP, claims and the September payrolls mean for the October Fed decisionThe US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.
Author  Mitrade
18 hours ago
The US labour market faces its densest data week of the month. JOLTS job openings land Tuesday (7.2 million expected), ADP on Wednesday (70,000 expected), initial claims on Thursday and the September non-farm payrolls on Friday (100,000 expected, down from 162,000). Markets price a 64%-70% chance of another quarter-point Fed hike on October 28. The dollar index sits at 100.77 and the S&P 500 at 7,729.8.
placeholder
Gold Falls Below $4,200 in Single-Day Drop of Over $100: Why Are Gold Prices Plunging? As of the Asian session on September 28, international gold prices continued their recent weakness, with spot gold (XAUUSD) falling below $4,200 intraday to a low of $4,179.42, down over
Author  TradingKey
15 hours ago
As of the Asian session on September 28, international gold prices continued their recent weakness, with spot gold (XAUUSD) falling below $4,200 intraday to a low of $4,179.42, down over
goTop
quote