Budget Fears Weigh on Defense Stocks Ahead of Hegseth Testimony
A USAF Lockheed Martin fighter jet lands at RAF Lakenheath in Lakenheath, UK.
Photographer: Simon Galloway/Getty ImagesTwo months after the Iran war began, euphoria around US defense stocks has faded as investors worry a rally that pushed shares to all-time highs went too far, too fast, and that a massive boost to the defense budget is unlikely.
Major defense suppliers, Lockheed Martin Corp. and Northrop Grumman Corp. have erased roughly one fourth of their market value since hitting a high on March 2, while shares of RTX Corp. have lost almost one-fifth. The S&P 500 Index has climbed 3.6% over the same time.