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Lockheed Martin Stock Falls 6.9% as Iran War Funding Fight Looms
Why did Lockheed Martin stock fall 6.9%?
Lockheed Martin (LMT) stock fell 6.9% to $595.04 on Wednesday after Democrats won Congress, raising the odds they use the Dec. 11 funding deadline to cut off Iran war money.
Key numbers
| Lockheed Martin (LMT) one-day move, Nov 4 | -6.9%to $595.04; Reuters says -6.5%, CNBC -3.6% intraday |
|---|---|
| Iran war cost so far | $47B+at least, and still rising |
| Government funding expires | Dec. 11shutdown if no new bill |
| Trump 2027 defense budget request | $1.5Tvs $901B approved now |
| S&P 500 aerospace and defense index, year to date | -1%nearly 1% lower in 2026 |
What happened
Lockheed Martin (LMT) stock fell 6.9% to $595.04 on Wednesday after Democrats won Congress, raising the odds they use the Dec. 11 funding deadline to cut off Iran war money. Government funding runs out on December 11, and without a new bill, parts of the government would shut down. Some Democrats, who take control of Congress in January, want any new funding bill to block money for the Iran war, which has cost at least $47 billion. Republicans oppose that, so a standoff could cause a shutdown.
Why it matters
Lockheed Martin makes weapons for the U.S. military, so any cut to war spending could reduce the orders it gets in future. A shutdown would also freeze parts of the government, and the war has already cost at least $47 billion and pushed up energy prices. Analysts still expect a large defense budget, about $1.15 trillion versus $901 billion approved now.
Who this affects
- MarketbearishMedium impact
- Investors face shutdown and war-spending uncertainty; a negative.
- CompanybearishMedium impact
- Lockheed shareholders lost nearly 7% in one day.
- CompetitorsbearishMedium impact
- Northrop, L3Harris, RTX and General Dynamics also fell.
- IndustrymixedMedium impact
- Contractors face tighter budgets, though analysts see spending staying high.
Lockheed Martin vs Northrop Grumman, L3Harris, RTX
How we got here
Democrats win Congress in midterm elections, stirring doubts over Pentagon spending plans.
Lockheed falls about 7% as defense stocks slide.
Democratic appropriator DeLauro says Democrats will not fund Trump's Iran war.
Democrats plan to demand Iran war funding limits in any spending bill.
What to watch
- Whether Democrats attach an Iran war funding ban to the year-end spending bill.2026-12-11
- Whether Republicans pass emergency Iran war money before losing control of Congress.Q4 2026
- Whether Trump uses his veto against any bill limiting Iran war funding.Q1 2027
Educational content only. Not investment advice.
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