NEW YORK, Feb 28, 2026, 15:48 (EST) — Market shut down for the day.
- Weekend strikes on Iran are likely to drive headline-chasing action in U.S. defense stocks as Wall Street opens Monday.
- RTX ended Friday in positive territory. Other major defense names climbed too, even as the S&P 500 slipped.
- Oil and supply-chain issues linger in the backdrop while traders chart the coming week.
RTX (NYSE: RTX) will probably remain in focus Monday, as U.S. and Israeli strikes on Iran sent a fresh shock that may put the defense trade back in play when U.S. markets open.
The setup is critical at this point, with RTX straddling two volatile lines: missiles and jet engines. Raytheon’s division delivers pivotal munitions. Pratt & Whitney, for its part, handles engine supply for both commercial aircraft and defense.
There’s another angle. Should the shock hit oil and rattle risk appetite, the entire tape can slip—even if defense names see a bit more interest in comparison.
RTX finished Friday at $202.62, up 2.52%. Lockheed Martin tacked on 2.56%, with Northrop Grumman advancing 1.90%. The S&P 500, meanwhile, slipped 0.43%. MarketWatch
The iShares U.S. Aerospace & Defense ETF wrapped up Friday at $243.72, barely missing its 52-week peak of $243.92. BlackRock
Israel claimed responsibility for killing Iran’s Supreme Leader Ali Khamenei in the strike, with a senior Israeli source telling Reuters Khamenei’s body was recovered. Iran fired back, launching missiles targeting Israel and Gulf states that host U.S. military bases, and declared the Strait of Hormuz—vital for global oil transport—shut. Reuters
Iran launched missiles at Kuwait, Qatar, the United Arab Emirates and Bahrain, according to statements from those governments. Jordan shot down missiles as well. UAE state media said a single fatality was recorded in Abu Dhabi. Reuters
Oil’s moving the needle, too. Brent jumped roughly 2% Friday, closing at $72.48 a barrel. Barclays put out a note: if there’s a significant supply hit, Brent might head for $80. The bank also pointed to a “risk premium” of $3-$5 per barrel—the kind of cushion that can vanish fast if supply chains stay steady. Reuters
RTX shares have also been riding on some positive developments. Delta Air Lines announced plans to purchase another 34 Airbus A321neo jets, with deliveries kicking off in 2029. That brings Delta’s total orders for the model up to 189. The new aircraft will be powered by Pratt & Whitney’s geared turbofan (GTF) engines, according to the airline. Reuters
Earlier this month, Raytheon secured a seven-year contract with the Pentagon that’s set to ramp up production of Tomahawk cruise missiles and other munitions, as Washington looks to refill dwindling supplies. Under the agreement, Tomahawk output—currently around 60 per year—is slated to eventually climb to 1,000. RTX CEO Chris Calio called the deals “redefin[ing] how government and industry can partner to speed the delivery of critical technologies.” Reuters
Analysts polled by Investing.com put the average 12-month price target at $216.92, with projections scattered between $179 and $238. Shares are currently trading close to the upper end of their 52-week band, which runs from $112.27 to $206.73. Monday could see either a push toward fresh highs or a slip back toward last week’s territory—traders are watching both scenarios. Investing.com
The trade can flip quickly. A brief pause in fighting, or a sharp risk-off move if energy costs jump, could limit any pop in defense stocks. Aerospace supply chains are still under pressure: Reuters flagged worsening rare-earth shortages, and AeroDynamic Advisory’s Kevin Michaels said it’s “a watch item” for engine manufacturers. RTX’s Pratt & Whitney was among those that wouldn’t comment. Reuters
The next catalyst is straightforward—and it’s coming up fast. Over the weekend, all eyes are on Hormuz shipping and oil prices ahead of the U.S. market’s Monday, March 2 open. Early indications of new Pentagon orders or ramped-up defense supply chain activity could also set the tone.
