The outbreak of war between Israel and the terrorist outfit Hamas has created another major geopolitical flashpoint, this time in the Middle East, even as Russia's invasion of Ukraine nearly two years ago continues to weigh heavily on Europe. U.S. markets have been fairly resilient in response to the news, but some analysts - including Bob Savage of BNY Mellon - are warning that investors may be underestimating the risk of an “extended war" in the heavily besieged Gaza Strip.
Unsurprisingly, these developments have shoved defense stocks into the spotlight on Wall Street. In the immediate days following news of the latest Israel-Hamas conflict, the top 5 U.S. defense contractor stocks gained more than $28 billion in value.
