The aerospace and defense sector experienced a significant sell-off in pre-market trading, with the ITA ETF dropping nearly 10%. This move is likely a reaction to reports of an unprecedented, AI-driven cyber assault on Taiwan, which has heightened geopolitical tensions and stoked fears of a wider conflict. While many large-cap defense contractors have recently reported strong earnings and outlooks, the market appears to be pricing in the increased risk of regional instability. This broad-based decline reflects a flight to safety amid the concerning geopolitical developments.