Lockheed Martin shares reach all-time high amid geopolitical tensions
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Lockheed Martin's stock surge is linked to increased investor expectations for defense spending due to ongoing Middle Eastern unrest.
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A man walks past a Lockheed Martin logo as he walks through a section of the company's chalet bridging a road at Farnborough International Airshow in Farnborough, southern England, July 19, 2006. (AP)
The US defense corporation Lockheed Martin reportedly saw a significant rise in its market capitalization during Friday's trading, with its stock reaching $560 before easing to $548.
The shares, which had previously climbed from $474 in late July to a peak above $548 in early August, surged following the company's strong Q2 financial results, which saw a 9% annual increase. Since the launch of Operation Al-Aqsa Flood on October 7, 2023, Lockheed Martin's stock has steadily increased, driven by investor expectations of greater defense spending amid the growing Middle Eastern unrest.
JP Morgan's Seth Seifman suggested that the stock's rise could be attributed to the increased demand for defense services in a volatile global environment.
Israeli stocks continue to plunge as Iran's retaliation looms
In the meantime, Israeli stocks plunged the most since October due to fears of potential retaliation from Iran and the Axis of Resistance, coupled with broader global market unease, according to a Bloomberg report. The TA-35 Index dropped by up to 3.1% and was down 2.6% as of 10:24 am in Tel Aviv. This decline follows a 3.3% decrease last week, bringing the index to its lowest point since February.
While "Israel" awaits the Axis' retaliation, the US has deployed additional forces and is advocating for a ceasefire in Gaza.
Regarding the occupation, Bloomberg reported that the Israeli shekel weakened for the sixth consecutive day, falling to 3.83 per dollar by 4:30 pm in Tel Aviv, its lowest since November. Similarly, Israeli stocks have reached their lowest level since April, which was also influenced by a global downturn in equity markets.
Read more: Asian stocks topple amid fears of potential US recession
