With Defense (ITA) down 67.5%, this looks like a sector-led move rather than a company-specific surprise.
The aerospace and defense sector sold off sharply following the Democratic party's victory in the midterm elections, securing control of both chambers of Congress. Investors are concerned that a Democratic-led Congress will impose stricter controls on military spending and scale back the proposed $1.5 trillion defense budget for fiscal year 2027. This political shift creates significant uncertainty for future government contracts, impacting major defense firms like Lockheed Martin, L3Harris, and RTX, which saw notable declines.