Lockheed Martin Corp. LMT shares have surged by nearly 4% in overnight trading, driven by escalating tensions in the Middle East and a global market sell-off.
What Happened: The stock of the American aerospace and defense company has risen by almost 4% in overnight trading on Robinhood Inc.. This follows a week in which the stock has seen a nearly 9% increase.
The U.S. is increasing its military presence in the Middle East as a defensive measure to de-escalate tensions in the region, a White House official revealed on Sunday.
The recent assassination of Ismail Haniyeh, the leader of the Palestinian Islamist group Hamas, in Tehran, and a strike in Beirut that killed Fuad Shukr, a senior military commander from the Lebanese group Hezbollah, have heightened regional tensions.
There are concerns that the conflict between Israel and Palestinian militants in Gaza, which began last October, could escalate into a wider Middle East conflict. Iran and Hamas have accused Israel of Haniyeh’s assassination and have vowed revenge, raising the specter of further hostilities.
U.S. President Joe Biden is scheduled to meet with his national security team on Monday to discuss the situation in the Middle East, the White House announced. Last week, The Pentagon also confirmed the deployment of additional fighter jets and Navy warships to the region, Reuters reported.
Why It Matters: The surge in Lockheed Martin’s stock comes amid a deepening global market selloff, with Japanese stocks experiencing a significant drop.
This has sparked concerns among top financial experts, including Mohamed El-Erian, the Chief Economic Advisor at Allianz. The situation has been further compounded by the appreciation of the Yen, currently trading at 145 to the dollar.
Despite the global market turmoil, Lockheed Martin’s stock has been on an upward trajectory, building on its strong performance in the previous week. The company was also among the top performers in the large-cap stock category last week.
Amid the market volatility, renowned author and investor Robert Kiyosaki sees the current situation as an opportunity for the brave to get richer. He advised investors to stay calm and invest when others are quitting.
Price Action: Lockheed Martin stock is currently priced at $548.77, showing a slight decrease of 0.016%, on Friday close. Year to date, the stock has increased by 20.31%, according to data from Benzinga Pro.
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Photo courtesy: Lockheed Martin
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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