Investing.com — Shares of prominent defense contractors experienced a decline as the market reacted to news of a potential ceasefire agreement between Israel and Lebanon's Hezbollah.
Lockheed Martin (NYSE:LMT) and Northrop Grumman (NYSE:NOC), two major players in the industry, saw their stock prices drop by 2.4% and 1.6% respectively.
The S&P 500 Aerospace & Defense Industry Index, which includes these companies, was down by as much as 0.5%. This downturn contrasted with the overall S&P 500, which saw an increase of 0.6% during the same period.
Other companies in the aerospace and defense sector also faced declines, with Axon and L3Harris both falling by 1.1%.
The dip in defense stocks came amid emerging reports suggesting that Israel could be mere days away from reaching a ceasefire agreement with Hezbollah. This development is a result of intensified efforts by a senior envoy from the outgoing Biden administration, who has been engaged in shuttle diplomacy to facilitate the agreement.
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