Northrop Grumman (NOC) and major defense contractors rallied after the U.S.-Iran ceasefire collapsed. President Trump declared the ceasefire over following Iranian attacks on commercial ships in the Strait of Hormuz. The U.S. military subsequently launched strikes against more than 80 targets in Iran.
Renewed hostilities drove investor expectations for increased and sustained military spending. Markets anticipate higher demand for advanced weaponry and military technology due to regional instability. Investors are treating defense stocks as a safe haven amid heightened geopolitical risks.