
Shares of defense stocks Rtx Corp (NYSE:RTX), Lockheed Martin Corp (NYSE:LMT) and General Dynamics Corp (NYSE:GD) climbed 4.6%, 4.2% and 1.2%, respectively, during Friday’s pre-market trading session amid Israel’s intensifying military operations in Lebanon and Iran.
What Happened: Israel recently initiated an invasion of Lebanon and executed leaders of Iran’s IRGC. This act provoked Iran to launch extensive strikes against targets within Israel. Lockheed Martin (NYSE:LMT), the largest arms manufacturer globally, produces the F-35 aircraft, which Israel employs in its regular bombardments of Gaza.
RTX Corporation, formerly Raytheon, the second-largest arms manufacturer, provides Israel with “bunker buster” bombs, which are prohibited in densely populated areas.
Meanwhile, General Dynamics (NYSE:GD), another manufacturer of bunker busters, produces the BLU-109 bombs currently used by Israel.
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Why It Matters: The escalating tension in the Middle East has had a profound impact on global markets. Israel’s preemptive strike on Iran caused U.S. stock futures to slide, oil prices to jump 8%, and gold to surge above $3,400.
Moreover, the Trump administration has distanced itself from Israel’s recent military actions against Iran. These strikes are expected to complicate President Donald Trump's efforts to negotiate a nuclear deal with Tehran.
Lastly, President Trump’s ambitious $175 billion plan to develop a “Golden Dome” missile defense system announced in May is expected to usher in a new era for defense stocks like RTX, Lockheed Martin, and L3Harris (NYSE:LHX).
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.