The stock's sharp move down cost the 30-stock Dow more than 150 points. Boeing has by far the biggest influence on the Dow given the index is price weighted. In other words, a higher share price will have a greater impact on the Dow.
Boeing's outsized influence over the Dow could be seen by looking at the index's counterparts, the S&P 500 and Nasdaq Composite. Both the S&P 500 and Nasdaq traded more than 1 percent higher while the Dow was up 0.79 percent. In other words, the Dow would be much higher if not for the aerospace giant's drop.
Boeing closed at $422.54 per share on Friday. However, the stock closed at $400.01 on Monday and fell as low as $365.55 after an Ethiopian Airlines flight crashed on Sunday, killing all 157 people on board.
The plane used for that flight was a 737 MAX 8 jet, one of Boeing's top-selling airplanes. The crash raised concern over the model's safety as it comes less than six months after another deadly crash involving the 737 MAX 8. Several countries, including China and Indonesia, have grounded all flights involving the aircraft.
"We anticipate heightened volatility in Boeing shares," Morgan Stanley analyst Rajeev Lalwani said in a note to clients. "Though it is early to draw conclusions, there may be concerns of disruption around safety, production, groundings, and/or costs, all of which should be manageable longer-term."
— CNBC's Michael Bloom contributed to this report.