Why Defense Stocks Are Hitting Turbulence Today
A combination of tariff-related uncertainty and questions about the federal budgeting process are weighing on aerospace stocks. Shares of Science Applications International (NASDAQ: SAIC) traded down as much as 5% on Monday, and shares of RTX (NYSE: RTX) and Lockheed Martin (NYSE: LMT) were each down more than 3% apiece, before rallying somewhat heading into the market close.
The tariff-induced panic has extended far beyond companies that are usually associated with tariffs. Aerospace companies enjoy some carve-outs in tariff regimes, but are still likely to see costs go up as supply chains adjust and raw materials become more expensive.
Ongoing budget battles in Washington are adding to the uncertainty. Last week, the Senate approved a framework for a federal budget plan. But the bill faces roadblocks in the House of Representatives and is not a lock to be passed ahead of a planned mid-April recess.
Source Fool.com
