Aerospace and defense stocks typically outperform the S&P 500 in the six months after Middle East crisis events.
Defense stocks have climbed and the broader market has sold off following last week’s killing of Iranian military leader Qasem Soleimani.
Huntington Ingalls and General Dynamics are the two best-performing defense stocks on average following major crisis events.
Stocks fell on Friday after the U.S. confirmed that an airstrike killed Iran’s top military commander, sending oil prices surging and ratcheting up geopolitical concerns.
The Dow Jones Industrial Average closed 233.92 points lower, or 0.6% at 28,634.88 and posted its biggest one-day loss since early December. The S&P 500 also had its worst day in a month, sliding 0.7% to 3,234.85. The Nasdaq Composite dropped 0.8% to 9,020.77. The Dow briefly dropped more than 360 points at the open. The major averages recovered some ground later in the session as oil prices came off their lows.
Read MoreStocks and oil tend to outperform defensive assets like gold and Treasurys in the months after major crisis events in the Middle East, according to an analysis by CNBC.
A U.S. airstrike killed a key Iranian leader, sending oil and gold prices higher.
Major U.S. stock indexes opened lower after the strike.
