Impact of Malaysia Air plane crash on U.S. economy

Stocks plunge after the plane crash

People inspect the crash site of a passenger plane near the village of Grabovo, Ukraine, Thursday, July 17, 2014. Ukraine said a passenger plane carrying 295 people was shot down Thursday as it flew over the country, and both the government and the pro-Russia separatists fighting in the region denied any responsibility for downing the plane. (AP Photo/Dmitry Lovetsky)

SPRINGFIELD, Mass. (WWLP) – Shortly after the plane crash, the stock market plunged, and President Obama issued a statement to the nation.

A Malaysian Air passenger plane was shot down, killing everyone on board. Shocking news that rattled the U.S. financial markets.

The Dow dropped 161 points, its biggest drop in two months.

You can see on the graph, stocks plunged at around 1 o’clock Thursday afternoon. That’s when people started hearing about the passenger plane that crashed in Ukraine, and then later in the afternoon, about Israel launching a ground operation in Gaza.

Springfield Financial Advisor Mark Teed told 22News the market reacts quickly, out of fear. And investors look for safer investments, which causes gold and oil prices to go higher.

But he expects the prices to return to normal soon.

“You know, you can ride this out. This will be one-day event and we’ll find out what happens. Markets will react. We have earnings coming out, which will be very positive, so typically this might be a one-afternoon kind of event, so don’t worry about,” Teed said.

Meantime, tension continues to escalate. A conflict between Russia and Ukraine has now become an international crisis, but experts warn, it may not be the United States’ problem to solve.

Western New England University Professor of History John Baick told 22News “The United States has already tried to put some leverage against Putin, against this entire conflict in Ukraine. However, we don’t have a direct stake in this matter, it’s not like we can put boots on the ground.”

He added Russia’s President Vladimir Putin could end this conflict between Russia and Ukraine. But it doesn’t seem like he will back out any time soon.


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