In a notable trading session, the Dow Industrials experienced a significant drop, falling over 260 points. This decline comes as various sectors display contrasting performances, notably within the defense and energy industries, which are currently on an upward trajectory.
Defense stocks have made headlines, with several companies reaching all-time highs. GE Aerospace, for example, saw its stock climb by 9% in February, marking a new record for the company. Huntington Ingalls also celebrated an all-time high, witnessing a 9% increase over just one week. Lockheed Martin’s shares soared 14% in the past month, while Northrop Grumman reported an impressive nearly 30% rise this year alone. RTX’s shares rose by 12% in 2026, reflecting a strong trend among defense-related ventures. CNBC’s Morgan Brennan will provide further updates and analysis on this sector, including the implications of the increasing American military presence near Iran and insights into Iran’s military capabilities, during Friday’s segment of “Worldwide Exchange” at 5 a.m. ET.
In the oil and natural gas markets, West Texas Intermediate crude oil futures gained around 16% this year, while Brent crude futures increased by about 18%. On the other hand, natural gas futures have seen a decline of nearly 19% in 2026. Conversely, various energy companies are demonstrating strong performances. APA Corp recently reached an 18-month high with an 8% gain this week, while Baker Hughes hit a nine-year high, climbing 37% this year. ConocoPhillips and Chevron also marked significant milestones, with their stocks up 19% and 21%, respectively. Other companies like Devon Energy, Diamondback Energy, Halliburton, Kinder Morgan, and Targa Resources are also performing admirably, with respective year-to-date increases between 16% and 21.5%.
On the technology front, Microsoft drew attention with a significant insider purchase. Director John Stanton acquired 5,000 shares valued at approximately $2 million, marking one of the largest insider transactions at the company in almost two decades. However, Microsoft’s stock is currently down 28% from its peak on July 31, with the relative strength index (RSI) standing at 32.5 — a level many investors interpret as oversold.
Looking ahead, major economic data releases are set for 8:30 a.m. on the upcoming “Squawk Box” segment, hosted by Becky Quick, Joe Kernen, and Andrew Ross Sorkin. Analysts are anticipating the first reading of fourth-quarter GDP to show a 2.5% increase. Personal income data and key inflation metrics will also be released simultaneously, with economists predicting a 0.2% increase in personal income and a monthly rise of 0.3% in the personal consumption expenditures price index.
In the bond market, yields are reflective of a prevailing cautious sentiment. The 10-year Treasury yield currently stands at 4.075%, while the two-year yield is at 3.465%. Additional data indicates the three-month Treasury yield is at 3.698%, with various bond ETFs yielding between 4.41% and 7.02%.
As traders and investors prepare for the next session, the divergence in sector performance adds an interesting layer of complexity to market dynamics, with defense and energy leading the way amidst a broader market pullback.
