Lockheed Martin's stock plummeted 5.01% intraday on Thursday, reflecting a sharp decline in the defense sector.

The drop came after the United States and Iran signed an interim deal to end their nearly four-month-long war, reducing expectations for continued high defense spending. President Donald Trump signed the memorandum of understanding on Wednesday, with Vice President JD Vance set to represent the U.S. at a formal ceremony in Switzerland on Friday to confirm the interim accord.

The end of hostilities negatively impacted shares of major defense contractors, with L3Harris down approximately 6%, Northrop Grumman falling 6%, General Dynamics easing about 3%, Boeing dropping around 2%, and RTX Corp shedding approximately 4% alongside Lockheed Martin's decline.