New York, March 3, 2026, 14:47 ET — Regular session
- RTX dropped roughly 2.7%, slipping from an earlier session high of $216.16.
- ITA, the aerospace and defense ETF, dropped roughly 2.1%, lagging behind the wider market.
- Traders are turning their attention to headlines out of the Middle East, with Friday’s U.S. jobs report also looming large.
Shares of RTX Corporation (RTX) slipped 2.7% to $206.36 Tuesday afternoon, retracing after earlier climbing as high as $216.16. The stock had ended Monday at $212.16.
Defense stocks, sensitive to headlines out of the Middle East, saw selling pressure on Tuesday as traders took profits and the market leaned risk-off. “I just don’t think the average market participant is that moved by the conflict until the price of oil gets to $100 a barrel,” said Alex Morris, CEO of F/m Investments. Reuters
RTX straddles the business: Raytheon, its defense arm, produces missiles and air-defense systems, and Pratt & Whitney provides jet engines. According to Reuters, Raytheon’s Tomahawk cruise missiles featured in the U.S. strikes on Iran.
Most defense names traded in the red. Lockheed Martin slid 1.7%, with Northrop Grumman losing 1.1%. General Dynamics edged lower, off just 0.1%. The iShares U.S. Aerospace & Defense ETF slipped 2.1%. The SPDR S&P 500 ETF also finished down 0.9%.
After a strong jump Monday, defense stocks pulled back as the conflict intensified and investors piled into both defense contractors and energy names. RTX tacked on 4.7% during that session, Investopedia said.
RTX gave its latest update to investors back in late January, putting 2025 sales at $88.6 billion and citing a backlog worth $268 billion. Looking out to 2026, the company is guiding for adjusted sales between $92.0 billion and $93.0 billion, with adjusted EPS seen in a $6.60 to $6.80 range. “We enter 2026 with great momentum and are well positioned to deliver our 2026 financial outlook,” Chairman and CEO Chris Calio said. SEC
But RTX isn’t just a missile play. Pratt & Whitney’s ongoing efforts to resolve issues with its geared turbofan (GTF) engines — the same type found on a large chunk of Airbus A320neo-family aircraft — have disrupted parts supply and clogged maintenance shops throughout the sector.
The war premium doesn’t always stick around. Should fighting ease off or new orders not materialize, defense stocks might surrender some of their recent run-up. Contractors, for their part, remain under the gun from Washington to ramp up production and accelerate deliveries.
Traders are eyeing developments out of the Middle East, bracing for oil’s direction, and waiting on Friday’s U.S. February jobs data set for release at 08:30 a.m. ET.
