Dow Jones: US Stocks Rebound as Boeing Rallies, Options Expiry Eyed Today

Dow Erases 400-Point Drop as Boeing Lifts Industrials; Traders Brace for Options Expiry

U.S. stocks cut earlier losses Friday as the Dow Jones Industrial Average clawed back from a 400-point drop, buoyed by strength in Boeing and easing tariff fears. The S&P 500 was last down 0.2%, while the Nasdaq hovered around flat. A volatile session is unfolding as traders position ahead of a major options expiration and look for clarity on trade policy from President Trump.

Which Sectors Are Moving Markets Today?

Industrials helped stabilize the Dow, with Boeing jumping over 4% after reports it secured a high-profile defense contract, beating out Lockheed Martin, which fell 7%. That strength offset pressure from FedEx, which dropped more than 8% after cutting its full-year guidance again due to soft U.S. industrial demand. UPS fell 2.6%, dragging on the Dow Transport Index, which is now more than 18% off its November high.

Consumer names also struggled. Nike slid over 5% after warning of a larger-than-expected Q4 revenue decline tied to tariffs and weak sentiment. Materials lagged as Nucor lowered its earnings outlook, weighing down the sector by 1.6%.

Tech and Semis Remain Under Pressure

Despite upbeat results, Micron reversed sharply and dropped nearly 8% by midday. The chipmaker beat top- and bottom-line estimates and reported surging AI-related demand, but profit-taking hit the stock hard. Broader chip sentiment also weakened, contributing to Nasdaq underperformance. Super Micro climbed 6% after a JPMorgan upgrade, while Micron’s slide underscored the market’s selective appetite for tech exposure.

What’s the Market Watching on the Policy Front?

Markets bounced off session lows after President Trump hinted at “flexibility” around upcoming reciprocal tariffs, even as he reiterated the April 2 deadline. He also referenced plans to engage Chinese President Xi Jinping, calming some trade tensions. Still, firms continue to cite uncertainty in planning, capex, and hiring—a trend that’s increasingly impacting forward guidance across sectors.

Why Does the Options Expiration Matter Today?

A key event still looms: the expiration of more than $4.7 trillion in notional options tied to stock indices, futures, and single-stock contracts. This quarterly quadruple-witching—Goldman Sachs says it represents 8.2% of Russell 3000 market cap—has the potential to drive sharp moves into the close. While recent positioning may reduce forced flows, trading could remain choppy as contracts are rolled or closed.

Midday Market Outlook

The S&P 500 is still trying to hold onto a 0.2% gain for the week, which would break a four-week slide. However, tariff uncertainty, soft earnings, and positioning into options expiry continue to cap risk appetite. Traders will be watching into the close for volatility tied to the expiration, while upcoming macro data and Fed rate expectations remain key for next week’s setup.

More Information in our Economic Calendar.