Defense Stocks RTX, Lockheed Martin, General Dynamics Climb In Friday Pre-Market: What's Going On? - General Dynamics (NYSE:GD), L3Harris Technologies (NYSE:LHX)

Shares of defense stocks Rtx Corp RTX, Lockheed Martin Corp LMT and General Dynamics Corp GD climbed 4.6%, 4.2% and 1.2%, respectively, during Friday’s pre-market trading session amid Israel’s intensifying military operations in Lebanon and Iran.

What Happened: Israel recently initiated an invasion of Lebanon and executed leaders of Iran’s IRGC. This act provoked Iran to launch extensive strikes against targets within Israel. Lockheed Martin LMT, the largest arms manufacturer globally, produces the F-35 aircraft, which Israel employs in its regular bombardments of Gaza.

RTX Corporation, formerly Raytheon, the second-largest arms manufacturer, provides Israel with “bunker buster” bombs, which are prohibited in densely populated areas.

Meanwhile, General Dynamics GD, another manufacturer of bunker busters, produces the BLU-109 bombs currently used by Israel.

Why It Matters: The escalating tension in the Middle East has had a profound impact on global markets. Israel’s preemptive strike on Iran caused U.S. stock futures to slide, oil prices to jump 8%, and gold to surge above $3,400.

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Moreover, the Trump administration has distanced itself from Israel’s recent military actions against Iran. These strikes are expected to complicate President Donald Trump's efforts to negotiate a nuclear deal with Tehran.

Lastly, President Trump’s ambitious $175 billion plan to develop a “Golden Dome” missile defense system announced in May is expected to usher in a new era for defense stocks like RTX, Lockheed Martin, and L3Harris LHX.