Defense contractors on Wednesday gave up their earlier gains after the Federal Reserve raised interest rates by 0.75 percentage point for the third straight time and indicated more hikes are possible to curb inflation.
Companies such as Lockheed Martin ( LMT ) and Northrop Grumman ( NOC ) had risen after Russian President Vladimir Putin ordered reservists to mobilize for an escalating war in Ukraine. He also challenged the West for supporting Ukraine with a veiled threat of a nuclear attack.
Stock indexes closed near session lows after alternating between gains and losses as Fed Chairman Jerome Powell spoke to reporters . Defense stocks also faced selling pressure into the close of regular trading:
General Dynamics ( NYSE: GD ) down -0.4% to $228.20 a share.
Huntington Ingalls Industries ( HII ) down -0.1% to $232.58.
Lockheed Martin ( LMT ) down -0.1% to $420.20.
L3Harris Technologies ( LHX ) up 0.1% to $228.72
Northrop Grumman ( NOC ) down -0.2% to $492.87.
Raytheon Technologies ( RTX ) down -1% to $84.32.
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Defense stocks give up gains as markets swoon after Fed decision