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GovCon Index Averted a Weekly Loss Amid Wall Street’s Worst Week

GovCon Index Averted a Weekly Loss Amid Wall Street’s Worst Week

Executive Mosaic’s GovCon Index advanced 1.08% before the weekend and averted a third consecutive losing week. The index, which tracks the stock performances of 30 major government contractors, ended at $4,786.97 for a 0.13% week-on-week gain.

Wall Street concluded the week with a tech sell-off, and only the Dow Jones Industrial Average (+0.01%) yielded a gain. The S&P 500 and Nasdaq Composite extended their slump to six days and posted 3% and 5.5% losses for the week, respectively.

Rate cut uncertainties, and geopolitical risks are headwinds for stocks. However, defense stocks and GovCon Index components Lockheed Martin (NYSE: LMT), RTX (NYSE: RTX), Northrop Grumman (NYSE: NOC), L3Harris Technologies (NYSE: LHX), and General Dynamics (NYSE: GD) advanced Friday and notched weekly gains.

Lockheed Martin rose 2.99% in five days, while AI stock Palantir Technologies tumbled 9.7% for the week. The prime defense contractors, including Boeing (NYSE: BA), are on the tap to present their quarterly earnings in the coming week.

Market analysts expect most U.S. defense contractors to benefit from the military conflict in the Middle East and increased military spending of governments. Meanwhile, the Feds’ blackout period began on April 20 before the third Federal Open Market Committee meeting this year, which will be held from April 30 to May 1.

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