U.S. defense stocks surged Wednesday following reports that the Trump administration is moving closer to potential military action against Iran. The SPDR S&P Aerospace & Defense ETF gained 2% while the Global X Defense Tech ETF rose 2.7%. Military buildup in the region includes two aircraft carriers, multiple warships, and hundreds of fighter jets. Prediction markets show rising odds of a U.S. strike on Iran, with 55% probability by March 15 and 67% by June 30.

Ten large-cap stocks experienced significant declines last week. Pinterest fell 21.73% after missing Q4 earnings and issuing weak Q1 guidance with multiple downgrades. DraftKings dropped 18.65% following disappointing Q4 results and below-estimate FY26 guidance. Other major losers included Astera Labs (down 23.74%), Medpace (down 20.69%), Zillow (down 20.89%), and Flutter Entertainment (down 18.88%), driven by earnings misses, analyst downgrades, and broader tech sector concerns about AI trade profitability.

January 2026 saw extreme stock movements driven by earnings surprises and sector disruptions. Top gainers included SanDisk (up 150%), Cameco (up 37%), and Lockheed Martin (up 30%), while software stocks suffered historic declines with Braze, HubSpot, Rubrik, Guidewire, and GoDaddy all posting worst months on record. Microsoft's weak Azure guidance triggered a broader software sector selloff, with the IGV ETF down 14% for the month.

Ten large-cap stocks surged last week driven by defense spending increases, AI infrastructure deals, and acquisition speculation. Top performers included Regencell Bioscience (89.45% gain), Revolution Medicines (51.38% on Merck acquisition talks), Kratos Defense (36.12% on military budget expansion), AeroVironment (35.86% on Army partnership), Karman Holdings (33.91% on acquisition deal), SanDisk (33.15% on pricing strategy), Bloom Energy (30.55% on credit facility), Oklo (29.04% on Meta power deal), Applied Digital (29.48% on earnings beat), and Figure Technology (29.33% on analyst upgrade).

U.S. stocks extended their rally into record territory as the jobs market showed mixed but reassuring signals. December nonfarm payrolls rose 50,000 (below expectations), but unemployment fell to 4.4%, supporting hopes for Fed rate cuts later in 2026. Defense stocks surged following Trump's announcement of a $1.5 trillion military budget for 2027, while market leadership rotated from mega-cap tech to cyclical sectors. Alphabet overtook Apple as the world's second-largest company by market value.

Karman Holdings CEO Anthony Koblinski sold 75,000 shares on Dec. 12, 2025, marking the fourth consecutive week of insider selling. The CEO disposed of 300,000 shares total over four months, with multiple other executives also selling shares in November. Despite the insider selling activity, the aerospace and defense supplier's stock has surged 360% since its February 2025 IPO, though it carries a high forward P/E ratio of nearly 200.

Defense stocks surged Thursday after President Trump proposed increasing the U.S. military budget from $900 billion to $1.5 trillion by 2027. Defense ETFs and contractors rallied, with small-cap defense companies leading gains. The broader market showed mixed performance, with consumer staples outperforming and technology stocks lagging due to weakness in chip producers.

In 2025, over 200 U.S. IPOs occurred, with less than a quarter beating the S&P 500's 18% return. Three standout performers were Karman (defense/aerospace, +230%), Circle Internet Group (stablecoin issuer, +150%), and Hinge Health (digital physical therapy, +45%), all significantly outperforming the broader market.

Gold and silver surged to record highs on Monday, with gold jumping 2.3% to $4,440 per ounce and silver rallying 2.1% toward the $70 level. All major U.S. equity benchmarks extended gains for a third consecutive session, with small caps leading the way as the Russell 2000 gained 1.8%. Paramount Skydance secured a $40.4 billion personal guarantee from Larry Ellison to support its $108.4 billion bid for Warner Bros. Discovery.

StepStone Group invested $21.1 million in Karman Holdings, a defense and aerospace systems provider, signaling strong confidence in defense sector spending and the company's growth potential.

NASA opened the Artemis 3 lunar mission contract to competition after SpaceX missed its timeline, prompting Elon Musk to criticize NASA's acting administrator Sean Duffy. Several space-related companies saw stock gains following the announcement.

Aerospace and defense supplier Karman reported record Q2 revenue of $115.1 million, exceeding Wall Street expectations. The company saw double-digit growth across all market segments and raised its fiscal 2025 guidance, driven by strong order activity and strategic acquisitions.