Profits of US arms manufacturers soar as Gaza genocide

US arms manufacturers have outperformed major stock market indices this year, a surge attributed to continued conflicts in the Middle East.

Equity funds that include stakes in companies in the aerospace and defense sector, such as Boeing, Lockheed Martin, RTX, General Dynamics, Northrop Grumman e L3Harrisexceeded profit expectations, significantly outperforming the index S&P 500.

According to a report from the Responsible Statecraftthe distribution of funds from USA to Israelalong with the growing demand for weapons due to global instability, boosted the share prices of these companies.

In detail, the Lockheed Martinknown for manufacturing the plane F–35used by Israel in bombings in Gaza, Lebanon, Syria e Yementhere was an increase of 54,86% in its total return in the one-year period to October 2024, exceeding the S&P 500 for about 18%.

Similarly, RTX, the producer of bombs that resulted in the devastation of large areas of Gaza, recorded an investor return of 82.69% last year, outperforming the S&P 500 index by approximately 46%.

A General Dynamicswhich also makes bunker-busting devices, delivered a 37% return to investors, outpacing the S&P 500 by just over 3%.

On October 1, coinciding with Israel’s ground invasion of Lebanon and Iran’s retaliatory strikes, Forbes reported that shares of many U.S. arms manufacturers gained more than 2.6%.

Shares of Lockheed Martin and RTX hit all-time highs, while L3Harris and Northrop Grumman reached their highest prices since 2022. Additionally, the iShares US Aerospace and Defense fund, managed by BlackRock, reached a new high, bringing its annual gain to 43% , outperforming the S&P 500 by 33%.

According to the Stockholm International Peace Research Institute (SIPRI)between 2019 and 2023, Israel accounted for 2.1% of all global arms imports, with the US supplying 69% of the weapons imported by Israel, followed by Germany at 30%.

The United States maintains its position as the world’s leading arms supplier, controlling 42% of the global market. In addition, they increased their military spending to support Israel, with investments of at least US$23 billion in one year.

With information from The Cradle