GovCon Index Posted 2 Consecutive Week-on-Week Loss for the 1st Time in 2024

Executive Mosaic’s GovCon Index ended the week with a 2.36% loss following the 0.8% drop Friday to $4,780.55. The index, which tracks the stock performances of 30 major government contractors, has fallen 3.04% since the start of April. Wall Street saw a broad market selloff due to the escalating conflict between Iran and Israel.

All the major U.S. stock indexes closed sharply lower before the weekend. The blue-chip Dow Jones Industrial Average suffered a 2.4% week-on-week loss, while the S&P 500 and Nasdaq Composite lost 1.6% and 0.5%, respectively.

Only three constituents on the GovCon Index finished with gains. Top performer BAE Systems advanced 1.24%, while Fluor Corporation (NYSE: FLR) led 27 decliners. Boeing (NYSE: BA) is currently the hard luck stock. The 2.20% drop to $169.55 on April 12 extended the stock’s losing streak to ten, the longest since 2018. Because of the negative market sentiment, Boeing’s year-to-date loss is nearly 35%.

Meanwhile, another earnings season has begun. Market analysts predict companies will show solid growth despite massive headwinds, including stubborn inflation and geopolitical tensions. However, rate cut expectations have shifted to a later date, and depending on inflation data, there may be no cut at all in 2024.

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