Redwire Corp. (RDW) experienced a significant pre-market plunge of 5.29% on Friday, as the stock pulled back from recent gains.

The decline is attributed to investors taking profits following a dramatic surge earlier in the week, which saw shares rise as much as 27% in a single session. That prior rally was fueled by a powerful combination of catalysts: SpaceX's filing for a massive initial public offering ignited broad optimism across space-related equities, and Redwire itself secured multiple military contracts, including a NATO tactical drone system deal and a U.S. Army training order.

The broader Aerospace and Defense sector is also retreating in sympathy, suggesting a sector-wide pullback as the initial euphoria from the SpaceX news subsides and traders lock in recent profits.