US defense contractors Raytheon, Boeing, Lockheed Martin, Northrop Grumman and General dynamics noticed surge in their shares following tomahawk missile strikes by Donald Trump government on Thursday.
Raytheon's stock surged to 2.5% Friday morning after 59 of the company's Tomahawk missiles were used to strike Syria in Donald Trump's major military operation on April 6, adding more than $1 billion to the defense contractor's market capitalization, Fortune reported friday.
The shares of other missile and weapons manufacturers, including Boeing, Lockheed Martin, Northrop Grumman and General Dynamics, each rose as much as 1%, collectively gaining nearly $5 billion in market value as soon as they began trading, even as the broader market fell.
US government commanded airstrikes against Syria Thursday night as response to a fatal chemical weapons attack on civilians earlier this week. The chemical attack has taken lives of 100 people. US government blamed Syrian President Basher-Al-Assad for the cause.
The technology and equipment of the defense companies, which all have contracts with the US government were likely also used in Trump's airstrikes on Syria.
Lockheed Martin, for example, makes the Tactical Tomahawk Weapons Control System, one part of a three-pronged system needed to launch the missile; the product calculates the trajectory from a ship to the target. General Dynamics also makes technology used to fire Tomahawk missiles.
Boeing, meanwhile, makes other types of cruise missiles. Defense contractor stocks have risen in the months since Trump was elected, spurred by his promises of a "historic" increase in US military spending.
The budget that the President Donald Trump proposed last month includes an additional $52 billion for the Department of Defense. Boeing stock has gained nearly 21% since the election, while General Dynamics stock is up 14% over the same period.