Defence & Space:
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What changed in defence and space, and why it mattered.
Pentagon and Raytheon sign a contract worth up to $6.3 billion for multi-year SM-3 Block IB production.
A multi-year missile-defence award gives RTX's Raytheon unit a long production line for SM-3 Block IB, which is the kind of contract that supports demand visibility. It is the clearest company-specific news in the pack, though no RTX price move is listed.
Space stocks fell together: AST SpaceMobile down 6.1%, Intuitive Machines 4.9%, Rocket Lab 4.9%, Redwire 4.7%, EchoStar 4.4% and Firefly 3.9%.
The drop hit the whole space group at once with no company news in the pack to explain it, so it reads as a sector move rather than a single-name story. SpaceX also closed 4.2% lower, but it combines launch, Starlink and more under one listing, so its move should not be read alone as space falling. Space was already weakening, with EchoStar and Rocket Lab slipping out of favour over the past week.
Government IT and services names rallied: SAIC up 6.2%, Booz Allen Hamilton up 6.1% and Leidos up 5.0%, while BigBear.ai fell 3.6%.
The gains in the three larger services contractors stand out against weakness elsewhere in the pack, and BigBear.ai moved the other way. The pack gives no catalyst for the rally, so the cause is not established. The software-services group held firm over the week, making it one of the stronger corners of the universe.
CSG fell 4.0% in land munitions.
It is the only land-munitions move in the pack, and the pack gives no company news behind it. The wider land-munitions group has weakened over the week, so the fall fits a soft backdrop, but it is a single stock move rather than a sector verdict.
Land and munitions· CSG.AS
Army and European policy events are due this week: the AUSA Annual Meeting on 12 October and the European Council summit on 15 October.
Army programme news tends to cluster around AUSA, as vendors show vehicles, munitions and drones. The European summit is where joint funding for European procurement is decided, so that outcome rests with EU leaders rather than with the companies.
Primes · Land and munitions · Drones and autonomy · Electronics
Defence and space is mostly weak: primes, naval, components, drones and electronics are weak, while aero-engines are the firm spot.
Most of the universe is weak, and the picture is slightly worse than a week ago. Primes and land munitions weakened over the week, and electronics saw Teledyne and Hensoldt slip. Aero-engines held firm, with most of that group still strong, and software-services also held.
Primes · Naval · Land and munitions · Drones and autonomy · Aero engines · Components · Electronics · Software and services· TDY, HAG.DE
Published 09/10/2026, 08:01 UTC · claude-sonnet-5-5