It turns out that perhaps the most reliable defensive play may be the defense sector itself. While the major indices led by the tech-centric Nasdaq Composite suffered a significant correction, military contractors – particularly Northrop Grumman (NOC) – performed reasonably well. With geopolitical flashpoints rising to a fever pitch, NOC stock appears to be a cynically relevant wager.
Yes, the immediate financial concern focuses on the possibility that the hype over artificial intelligence may have run its course. Conspicuously, tech juggernaut Nvidia (NVDA) – which manufactures the graphics processors that undergird generative AI platforms – suffered a drop of nearly 2% on Friday. In the past month, NVDA gave up 12.55% of market value.
