Defense Stocks Rally After U.S., Israel-Iran Strikes; Lockheed and RTX Reach Records

Global defense stocks rose sharply on Monday after reports of military exchanges between the U.S., Israel and Iran, and retaliatory strikes on regional allies. The moves came amid concern the conflict could widen and follow reports that missile strikes killed Iran's Supreme Leader Ayatollah Ali Khamenei.

European defense names such as Hensoldt and BAE Systems were among the top performers on the Stoxx 600, while U.S. defense contractors gained in premarket and morning trading. Lockheed Martin and RTX Corp each hit all-time highs, and shares of Northrop Grumman, Axon and others climbed more than 4% in early trade.

The strength in defense stocks contrasted with a broader market pullback across multiple sectors in the early hours of trading. Reports also noted retaliatory strikes affecting regional partners including Saudi Arabia, Qatar and the UAE.

Some reports highlighted that several members of the U.S. Congress hold shares in the defense companies that rallied, drawing attention to investor ownership among lawmakers.

Markets reacted to reports of recent strikes and escalating military actions involving the U.S., Israel and Iran. Investors often buy defense stocks when geopolitical risk rises because demand for military equipment and services can increase.

European names Hensoldt and BAE Systems were strong on the Stoxx 600, while U.S. firms including Lockheed Martin, RTX, Northrop Grumman and Axon climbed sharply, with Lockheed and RTX reaching record highs.

Not necessarily. The reports noted a selloff across multiple sectors in early trading, but market moves can change quickly. Geopolitical events often increase volatility, so broader market direction will depend on how the situation evolves.

Yes. Reports point out that several members of Congress own shares in some of the defense companies that rallied, which has drawn attention given the potential for conflicts of interest.

CNBC

Global defense stocks were higher early Monday, amid fears of an expanding Middle East conflict. Europe's Hensoldt and BAE Systems were among the top performers in the Stoxx 600, while U.S. firms Lockheed Martin and Northrop Grumman rose in premarket trading.

Finbold

Despite the widespread uncertainty and a selloff across multiple sectors, the early morning hours of Monday, March 2, led to a strong rally across several key industries.

Schaeffers Research

Defense stocks are in focus today, following news that the U.S. and Israel attacked Iran over the weekend, with missile strikes killing Supreme Leader Ayatollah Ali Khamenei.

Proactive Investors

US defence stocks were in demand on Monday as Wall Street reacted to the US and Israel's war on Iran and the retaliatory strikes on regional allies including Saudi Arabia, Qatar and UAE. Shares in Northrop Grumman Corp (NYSE:NOC, XETRA:NTH) rose 4.9%, with Axon Enterprise Inc (NASDAQ:AXON) and RTX...

Benzinga

Defense stocks are rallying on Monday after the attacks carried out by the U.S. against Iran over the weekend. Multiple members of Congress are among the shareholders of several of the top-performing defense stocks on Monday.

The Motley Fool

Defense stocks generally rallied following the strikes on Iran over the weekend. Ondas Holdings has been a breakout stock over the last year as it's begun to generate material revenue.

The Motley Fool

Conflict in the Middle East is prompting people to reduce risk. Defense companies can be safe havens during times of war.

InvestorPlace

U.S.–Iran fighting sends oil, gold, and drone stocks soaring

Barrons

Lockheed Martin and RTX both rack up gains in premarket trading as the broader market frets about a drawn-out conflict.

24/7 Wall Street

A giant in the aerospace world, shares of Lockheed Martin ( NYSE:LMT ) are up 1% over the past week and 38% year-to-date as of March 2, 2026, a great way to start the month amid market concerns tied to U.S.

Seeking Alpha

Defense sector stocks surged following the escaltion in the Middle East, with General Dynamics (GD) and RTX (RTX) offering the most compelling upside. RTX stands out for accelerating double-digit growth, successful crisis management, and attractive PEG valuation relative to peers. General Dynamics i...

Proactive Investors

A collapse in smartphone demand is compounding geopolitical anxiety for chip stocks, with the sector's equipment makers caught in the crossfire Technology stocks bore the brunt of a broad market sell-off on Tuesday as escalating conflict in the Middle East drove oil prices sharply higher and stoked...

Zacks Investment Research

ITA and other defense ETFs are expected to gain as the U.S.-Iran strikes spur weapon demand, lifting Lockheed and peers on rising global tensions.

FXEmpire

AI struggles again in the early part of the session, as the war related markets are looking positive in the light of everything that is going on.

MarketBeat

Shares of industry leaders Lockheed Martin NYSE: LMT, RTX Corporation NYSE: RTX, and Northrop Grumman NYSE: NOC have surged, with some reaching new highs on a significant increase in trading volume.

Seeking Alpha

Defense stocks have surged as the Middle East war escalates. Despite a pullback, they have outperformed in the last year on rising military budgets. The U.S.-Israeli operation in Iran and its ramifications have investors mulling increased military spending and contract awards. Defense stocks are als...

Proactive Investors

Recent events in the Middle East have only reinforced an armaments megatrend, analysts at Citi believe, arguing growth expectations across the sector still look too conservative. The bank flagged RTX Corp (NYSE:RTX, XETRA:5UR), L3Harris Technologies Inc (NYSE:LHX, XETRA:HRS), Lockheed Martin Corp (N...

Bloomberg Technology

Rising oil and gas prices and risks to key shipping lanes are raising concerns about global supply chains. Tara Murphy Dougherty, CEO of Govini, a provider of logistics software for defense tech, discusses the situation with Caroline Hyde and Ed Ludlow on “Bloomberg Tech.

Reuters

The Trump administration plans to meet with executives from the biggest U.S. defense contractors at the White House on Friday to discuss ‌accelerating weapons production, as the Pentagon works to replenish supplies after strikes on Iran and several other recent military efforts, five people familia...

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