Key Takeaways
- Approximately 3,200 Boeing (BA) fighter jet workers have gone on strike after rejecting a four-year labor agreement, raising concerns about defense production.
- OPEC+ has agreed to increase oil output by 547,000 barrels per day (bpd) for September, continuing a series of accelerated hikes aimed at regaining market share.
- Australia's S&P/ASX 200 Index (ASX: XJO) ended slightly higher, up 0.01% at 8,662.50, despite a weaker lead from Wall Street and declines in energy and banking sectors.
Boeing (BA) is facing a significant labor disruption as roughly 3,200 workers who build fighter jets initiated a strike on Monday, August 4, 2025. The International Association of Machinists and Aerospace Workers (IAM) union members at facilities in St. Louis, St. Charles, Missouri, and Mascoutah, Illinois, voted to reject a modified four-year labor deal. This marks the first strike at Boeing's St. Louis defense hub since 1996. Boeing stated it was prepared for the work stoppage and would implement a contingency plan utilizing non-union workers. The rejected offer included a 20% wage increase over four years and a $5,000 ratification bonus, which the company called its "richest contract offer" to IAM 837.
Meanwhile, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, announced a decision to increase oil output by 547,000 barrels per day for September. This move is part of an ongoing strategy to regain market share, following previous accelerated output hikes in recent months. The group cited a healthy economy and low stocks as reasons for their decision. Despite these increases, Brent crude prices remained elevated, closing near $70 a barrel on Friday, up from a 2025 low of around $58 in April. However, crude oil prices did see a drop on Monday, August 4, after the OPEC+ announcement, with Brent crude falling by 0.6% to $69.32 per barrel and West Texas Intermediate (WTI) dropping below $67 in early trading due to oversupply concerns.
In Australia, the S&P/ASX 200 Index (ASX: XJO) closed marginally higher, gaining 0.01% to reach 8,662.50. This modest gain occurred despite a weaker performance on Wall Street and a decline in the Australian energy and banking sectors. Energy stocks, including Woodside Energy (ASX: WDS) and Santos Ltd (ASX: STO), were particularly affected, losing 1.1% due to falling oil prices following the OPEC+ production hike. Conversely, gold stocks saw gains, with bullion prices jumping on Friday due to weaker U.S. economic data spurring safe-haven demand. The Australian market had been expected to open lower, with SPI futures indicating a 0.4% drop.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.