Buoyed by Ukraine war, defense stocks escape worst of market slump

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Lockheed Martin and other defense contractors have benefited as the war in Ukraine and China’s military ambitions foster support for military spending.

more weapons to support Ukraine’s defense that eventually will need to be replenished, and spending plans telegraphed by the U.S. and its allies could go higher.

The Biden administration has sent billions of dollars’ worth of weaponry to support Ukraine’s defense forces, including helicopters, drones, artillery and tank-bustingmissiles, a joint venture of Lockheed and Raytheon Technologies Corp. A $40-billion package of additional Ukraine aid signed by President Biden on May 21 includes funds to replenish U.S. arms stockpiles.

The longer-term force driving U.S. defense spending, however, is China, which Defense Department Deputy Secretary Kathleen Hicks recently called “our military’s most-consequential strategic competitor and pacing challenge.”

 

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