War in the Middle East → Defense Stocks on Fire

Big moves in the markets lately — especially in defense. So here’s what’s going on and how I’m thinking about it.

What Just Happened?

Israel launched a huge airstrike on Iran, hitting over 100 military and nuclear targets. Iran responded by launching more than 100 drones toward Israel. Basically: tensions are boiling.

This kind of escalation always hits markets fast. And as expected, defense stocks exploded.

Defense Stocks Surge

Here’s how some of the biggest players reacted:

• RTX: +4.5%

• L3Harris: +3.2%

• Elbit Systems: +2.3%

• Lockheed Martin (LMT): up ~3% at one point

• General Dynamics, Northrop Grumman also moved higher

This wasn’t just retail traders jumping in — institutions rotate into defense when global risk flares up.

Why This Happens

When geopolitical tension spikes, countries boost defense budgets — fast.

More budgets = more government contracts.
More contracts = bullish for stocks like LMT, Raytheon, and even drone tech names.

ETFs like $ITA give exposure to the whole sector, but some people go straight for names like Lockheed for higher upside.

What’s the Catch?

Lockheed Martin has a solid long-term outlook, but earlier this week it actually dropped ~2.6%. Why?

The Pentagon cut its planned F-35 jet orders in half — from 48 to 24. Not ideal short term, but full contracts are still being negotiated, and global demand is strong.

Bottom line: short-term pullbacks, long-term opportunity.

Quick Market Rundown

• S&P 500: -0.5%

• Oil: Up (Middle East tension always does this)

• Defense stocks: Huge rotation

• Travel & airlines: Down — again

This rotation isn’t just a reaction to headlines. It’s positioning.

My Take

I’m still focused on prop trading and building capital, but this stuff matters. I track where smart money rotates — especially during global events — and defense has proven to be one of those plays.

In the next post, I’ll break down some setups I’m watching.

Stay Ahead

If you’re reading this, thanks. I’m just getting started with Wealth Whispers, and I’ll be dropping weekly insights like this — short, sharp, and actionable.

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