Defense stocks are all in the green since the downing of a Chinese spy balloon. Over the weekend, the US also brought down three UFOs that crossed into North American airspace. Despite the current gains, the debt ceiling debate may limit defense spending. Loading Something is loading.
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A stream of aerial intrusions — whether they be spy balloons from China or UFOs — has helped defense stocks this month.
Tensions have been up since a Chinese spy balloon was first spotted crossing over the continental US early this month, capable of photo and communication surveillance. It was brought down on February 4 by an F-22 stealth fighter, on orders from President Joe Biden.
The high-altitude drama did not end there, and was followed by the downing of three unidentified flying objects in North American skies this past weekend through military intervention.
The Pentagon hasn’t revealed much about the latest UFOs, which it refers to as unidentified aerial phenomena (UAP), and hasn’t said anything about their origin.
Still, the defense sector is up amid calls for more forceful responses to the incursions.
Lockheed Martin, the company behind the F-16, F-22 and F-35 fighter jets, has increased by 5% since February 3. Meanwhile, the aerospace and defense giant Boeing is up 3.67% and hitting its highest level so far this year.
Raytheon, which makes air-defense and missile systems, is up by 4.67%, and Northrop Grumman is up 3.94%.
On Monday, China accused the US of flying its own intelligence-gathering balloons across its territory, claiming this has happened at least 10 times since 2022. US spokespersons have denied the allegations.
Meanwhile, China has reported a UFO sighting near its naval port in Qingdao on Sunday and is preparing to bring it down.
In December, US defense stocks were buoyed upwards by a spending deal enacted by Congress that avoided a government shutdown.
But an ongoing congressional debate over the debt ceiling may result in less defense spending for the future.
Still, US military support for Ukraine’s war against Russia has provided billions of dollars in order for defense contractor. Since the war started last February, Boeing stock is up 7.66%, Lockheed has jumped 22.64%, Northrop has surged 18.28%, Raytheon has rallied 7.16%, and General Dynamics is up 6.5%.