Trump's Iran 'Economic Warfare' Declaration Slams Aerospace Stocks
The recent announcement of 'Economic Warfare' by President Donald Trump against Iran has triggered a broad selloff in aerospace and defense stocks. The move pushed Brent crude oil to $93.55 a barrel, according to CNBC.
Surging oil prices have driven up jet fuel costs for airlines, one of their most significant variable expenses. At the same time, the 10-year Treasury yield climbed above 4.7% after Federal Open Market Committee minutes revealed officials were prepared to tighten monetary policy if inflation failed to cool.
Curtiss-Wright (NYSE: CW) fell 3.8%, while space infrastructure firm Redwire (NYSE: RDW) dropped 7.1%, among the steepest declines in the group. Rocket Lab (NASDAQ: RKLB) declined 4.8%, Astronics (NASDAQ: ATRO) fell 6.2%, and Woodward (NASDAQ: WWD) also dropped 4.8% during the afternoon session.
The sharp decline of Redwire's stock is notable, given its history of significant price swings. Despite Thursday's losses, Redwire remains up 30.6% since the start of the year, though it still trades 54.5% below its 52-week high of $25.90 reached in May 2023.