The iShares U.S. Aerospace & Defense ETF (ITA) is experiencing a positive movement today, driven by significant developments in the defense sector. On November 27, 2024, the U.S. Army announced a substantial $670.5 million contract with Leidos Dynetics Technical Solutions (DTS) for the production of a common hypersonic glide body, in collaboration with Lockheed Martin. This contract is part of a broader initiative to enhance the U.S. military's hypersonic capabilities, which are crucial for maintaining a competitive edge in modern warfare. The integration of these advanced systems across military services underscores the strategic importance of hypersonic technology, boosting investor confidence in defense stocks.
Additionally, geopolitical tensions and defense spending commitments in Europe are contributing to the sector's momentum. The European Union's plan to invest 500 billion euros in collective defense, including joint weapons production, highlights the growing demand for advanced defense technologies. This increased focus on defense spending, coupled with the U.S. military's advancements, is creating a favorable environment for aerospace and defense companies, which are key components of the ITA ETF.
The ITA ETF is up 0.01% in pre-market hours on Wednesday, November 27, reaching a price of $154.70 as of 6:26 AM ET.