US stocks rebound while oil prices, Lockheed Martin jump amid Iran attacks, uncertainty in the air
US stocks rebounded Monday afternoon as investors bought the dip following US and Israeli air strikes on Iran, while defense stocks like Lockheed Martin jumped.The Dow Jones Industrial Average and S&P 500 traded roughly flat, while the Nasdaq rose 0.4%.Gold futures rose 1.3% to $5,317.70 as anxious investors rushed to safe-haven assets, and Wall Street’s volatility index jumped to its highest level so far this year.Joint US and Israeli air strikes over the weekend killed Supreme Leader Ayatollah Ali Khamanei.American officials on Monday confirmed that a fourth US service member had died from injuries sustained in the attacks. President Trump has warned that the conflict could last “four weeks or so” as the war has broadened to include neighboring countries around Iran.“Investors trying to assess what to expect in terms of volatility and market response have to make assumptions about the most significant and unknowable factor in this – how long and messy the US involvement with Iran may prove to be,” David Bahnsen, chief investment officer at the Bahnsen Group, wrote in a note Monday.“Markets do not like uncertainty and there is uncertainty in the air for the time being.”US crude prices jumped 5.5% Monday afternoon as investors worried heightened tensions could disrupt crucial oil shipments, as Iran is the fourth-largest oil producer in OPEC.Container shipping giants have temporarily suspended operations in the Strait of Hormuz, a vital maritime route located in the gulf between Oman and Iran that saw about 20.9 million barrels of oil transported per day in 2023, according to the US Energy Information Administration.Defense stocks skyrocketed Monday following the attacks.Lockheed Martin rose 2.1%, while Northrop Grumman and RTX each went up 4.2%.Drone maker AeroVironment plummeted nearly 20% – a sharp turnaround from a 15% climb earlier in the day.ExxonMobil, Chevron and ConocoPhillips also jumped 0.9%, 0.8% and 2.1%, respectively.Stocks seen ...