Defense Stocks Sink as Democrats Win Control of Congress

On a day when almost everything on Wall Street rose, the companies that build America's weapons went the other way.

Lockheed Martin fell 6.4%, Northrop Grumman dropped 4.5% and General Dynamics lost 3% after Democrats won control of Congress, the Associated Press reported ^[1]. Investors bet that the new majorities would press to wind down the war with Iran ^[1].

The selloff came as the Dow surged 3% in its best post-midterm session since 1982 ^[2].

Defense contractors have been among the year's steadiest winners since the Iran conflict began. A new Congress with the power of the purse could change the outlook on contracts, munitions orders and supplemental war funding, and Wall Street moved to price that in within hours.

Command Post will keep watching what the incoming leadership says about defense spending, and what it means for the factories and workers behind America's arsenal.