GE Plunges 1.49% Amid Aerospace Turbulence as $1.09B Volume Ranks 76th

General Electric (GE) fell 1.49% on August 5, 2025, with a trading volume of $1.09 billion, ranking 76th in market activity. The decline was driven by sector-wide aerospace turbulence linked to production disruptions and defense spending uncertainties. As a key supplier to Boeing’s defense platforms, GE faced indirect risks from a labor strike at Boeing’s St. Louis facility, which threatens timelines for programs like the F-15EX Eagle II. Meanwhile, a Pentagon shift of $5.4 billion toward precision strike and space programs raised questions about demand for traditional aerospace hardware. The stock traded near its 52-week low of $159.36, with intraday fluctuations between $268.62 and $277.00.

Technical indicators highlighted volatility. The stock’s 200-day moving average stood at $206.09, significantly below its current price, while the 30-day moving average at $259.22 suggested potential resistance. Options activity reflected investor caution, with high-conviction contracts like GE20250815C270 and GE20250815C272.5 showing leveraged exposure to price swings. Key support levels included $267.50 (Bollinger lower band) and $277.00 (intraday high). Sector peer Raytheon Technologies (RTX) also declined 0.78%, underscoring shared challenges in defense budget negotiations and production bottlenecks.

A backtest of GE’s performance following a 3% intraday drop revealed significant risks for long-term strategies. The stock’s post-plunge trajectory showed a sharp decline in returns, emphasizing the need for risk management during volatile periods. Aggressive bulls targeted a breakout above $277.00, while short-side traders monitored support at $267.50. The 8/15 options expiry was positioned as a critical catalyst for near-term direction.

The strategy of purchasing the top 500 stocks by daily trading volume and holding for one day generated a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This highlights the role of liquidity concentration in short-term performance, particularly during volatile market conditions.