Defense Stocks Hit Records As Trump Warns 'Big Wave' In Iran: 10 Names In Focus

Aerospace and defense stocks climbed to record levels Monday as escalating U.S. rhetoric toward Iran shifted market expectations from a limited strike to a potentially sustained military campaign.

The SPDR S&P Aerospace & Defense ETF (NYSE:XAR) climbed 3.6% in mid-morning trading, hitting a record territory.

Trump: ‘The Big Wave Hasn't Even Happened'

In a Monday morning phone interview with CNN, Trump hinted that the most intense phase of the campaign is still ahead.

"We haven't even started hitting them hard. The big wave hasn't even happened. The big one is coming soon," Trump said.

He reiterated that he initially expected the conflict to last four weeks and said the U.S. is "a little ahead of schedule."

On Iran's leadership vacuum after the initial strikes, Trump said, "We went down 49" Iranian leaders, adding, "We don't know who's leading the country now."

Trump also characterized recent Iranian actions, including strikes on neighboring Arab states, as unexpected and broader than U.S. planners forecasted.

Trump is set to hold a press briefing on Monday morning.

Pentagon: Not An Overnight Operation

Defense leadership echoed the White House's tone.

Defense Secretary Pete Hegseth and Joint Chiefs Chair General Dan Caine said the campaign is "not a single overnight operation," emphasizing that military objectives will likely take time, and that additional forces may flow into the region.

With more than 100 aircraft participating in initial strikes and significant missile and drone activity reported, markets are pricing in sustained demand for advanced weapons systems, air defense, and surveillance technologies.

Which Defense Stocks Are Rallying

Top-performing defense stocks in intraday trading included:

• Red Cat Holdings, Inc. (NASDAQ:RCAT), up 19.97%
• Karman Holdings Inc. (NYSE:KRMN), up 9.89%
• Intuitive Machines, Inc. (NASDAQ:LUNR), up 6.16%
• Ducommun Incorporated (NYSE:DCO), up 5.96%
• Cadre Holdings, Inc. (NYSE:CDRE), up 5.63%
• Leonardo DRS, Inc. (NASDAQ:DRS), up 5.40%
• Redwire Corporation (NYSE:RDW), up 5.13%
• BWX Technologies, Inc. (NYSE:BWXT), up 4.60%
• Mercury Systems, Inc. (NASDAQ:MRCY), up 4.47%
• Northrop Grumman Corporation (NYSE:NOC), up 4.45%

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