Defense and cybersecurity stocks climb amid Russia’s invasion of Ukraine
Defense and cybersecurity stocks are seeing a sharp rise in values as investors take note of pledges by the EU to boost defense spending and governments warn of an increased threat of cyber intrusions following Russia’s invasion of Ukraine.
US stock markets seesawed again on Monday as the war in Ukraine escalated. Most of the major US markets closed lower after regaining some of their losses, but defense contractors continued to gain as investors bet their businesses would benefit from the conflict.
Raytheon Technologies, the US defense giant and maker of the Stinger ground-to-air missile that Germany has pledged to supply to Ukrainian forces, has seen its shares price increase more than 10% since the invasion began last Wednesday. Raytheon’s stock rose over 4.6% on Monday and has risen more than 18% this year.
Lockheed Martin, the maker of the F-35 fighter jet, advanced more than 5.4% on Monday. The company, with Raytheon, is the manufacturer of the Patriot missile defense system set to be deployed with the Nato battlegroup in Slovakia.
Northrop Grumman, leading manufacturer of attack and surveillance drones, saw its stock rise close to 7% on Monday, after rising 3% since the Ukrainian conflict began. Huntington Ingalls Industries, the largest US military shipbuilder, is up over 7%.
By contrast, the US Dow Jones Industrials has risen 760 points since 23 February to close at 33,892 on Monday.
Outside the US, Britain’s BAE Systems, the largest defense contractor in Europe, Germany’s Rheinmetall, France’s Thales and Italy’s Leonardo have all seen their share prices rise sharply.
The jump in defense stocks comes after German Chancellor Olaf Scholz said that defense spending in Europe’s biggest economy will be increased to 2% of
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