US defense stocks experienced a sharp increase in value on Monday following the recent fighting in Israel and Gaza, Fox Business reported. The recent attack on Hamas resulted in the loss of more than 1,000 lives and left many more people injured.
US Defense stocks soar amid speculations of increased aid in Israel and Gaza war
Investors watched with interest as the stock prices of major defense companies like Lockheed Martin, Northrop Grumman, RTX, and General Dynamics climbed. This surge in stock values was fueled by speculations about the United States providing additional support to its ally, potentially involving increased orders for weaponry.
Lockheed Martin, renowned for manufacturing F-35 fighter jets, as well as Sikorsky and Black Hawk helicopters, is in the spotlight. It witnessed a notable 7% increase in its stock value, while Northrop Grumman surged by an impressive 10%, marking its most substantial percentage rise since March 2020, WSJ reported.
The Fiscal 2024 National Defense Authorization Act is proposing a 3.3% increase in U.S. defense spending, amounting to $886.3 billion. Additionally, analysts at Bank of America are forecasting that the U.S. Department of Defense’s discretionary spending will surpass the $1 trillion mark by Fiscal 2026.
According to Dow Jones Market Data Group, General Dynamics, a company known for producing submarines and combat vehicles, experienced its most significant stock price increase since March 2020, surging by over 9%.
NOW – U.S. defense stocks surge amid Israel-Gaza war. pic.twitter.com/0Xxzt6KOOQ
— Disclose.tv (@disclosetv) October 9, 2023
Israeli PM says war against Hamas will be long
Israeli Prime Minister Benjamin Netanyahu stated in a video on Saturday that Israel is “at war” and urged for a substantial military retaliation. Moreover, on Sunday, Netanyahu reportedly told President Biden, “We have to go in,” as reported by Axios. As per the Israeli leader, the war against Hamas will be “long and difficult.”
Over the weekend, Hamas militants carried out a series of deadly attacks on Israel, marking one of the deadliest assaults the nation has faced in many years. In response, the Israeli government has initiated airstrikes on the Gaza Strip, which is under Hamas control, and is also calling up military reservists for a potential counteraction. Meanwhile, Hezbollah, a Lebanon-based terror organization with ties to Iran, has voiced its support for Hamas, posing an ongoing threat along Israel’s northern border.