U.S. Treasury Secretary Scott Bessent’s forecast of “large Boeing orders” from China failed to lift the planemaker’s stock, as shares fell 2.9% on concerns over production capacity and rising oil prices. The drop came during President Donald Trump’s state visit to Beijing, where a deal for new aircraft is under discussion.
"I expect there are going to be large Boeing orders," Bessent told CNBC on Thursday. Despite his optimism, Boeing’s stock price action suggests investors are more worried about the company’s ability to deliver on its existing commitments than winning new business.
The stock’s decline to $233.71 contrasted with gains in the broader market, where the S&P 500 rose 0.4% and the Dow Jones Industrial Average climbed 0.6%. Investors appear to have already priced in the prospect of a major Chinese order, which would be the first in several years. Instead, the market is focusing on Boeing's massive backlog of over 6,800 unfilled jet orders, a decade's worth of production at current rates.
The sell-off also coincided with benchmark international oil prices remaining above $105 per barrel, a level that threatens to curtail air travel demand and, consequently, the need for new aircraft. While a significant order from China—a market that Boeing projects will need 8,800 new planes over the next 20 years—is a long-term positive, the immediate market reaction highlights the operational and macroeconomic hurdles the company faces.
This article is for informational purposes only and does not constitute investment advice.
