A new report from the Quincy Institute for Responsible Statecraft reveals that American arms dealers are experiencing “record profits” from Israel's ongoing military actions in the besieged Gaza Strip and Lebanon. The think tank's findings indicate that U.S. arms manufacturers have significantly outperformed major stock indexes this year, largely due to increased arms sales to Israel amid its conflict with Gaza and the escalated aggression against Lebanon.
According to the report, funds invested in U.S. aerospace and defense companies—including Boeing, Lockheed Martin, RTX, General Dynamics, Northrop Grumman, and L3Harris—have surpassed expectations, outperforming the S&P 500 index. The institute noted that the combination of taxpayer funds allocated to Israel and a rising global demand for weapons during this period of instability has acted as “jet fuel” for stock prices.
Specifically, Lockheed Martin, which produces the F-35 aircraft used by Israel in its bombings, reported a total return of 54.86% from October 7, 2023, to the same date in 2024, outpacing the S&P 500 by around 18%. RTX, known for its 2,000-pound “bunker buster” bombs that have devastated Gaza and are currently being used in Beirut, saw a total return of 82.69%, surpassing the S&P 500 by approximately 46%.
Since October 7, the U.S. has sent over 50,000 tons of arms and ammunition to Israel. Major defense companies like Lockheed Martin and RTX have seen their stock prices reach all-time highs, while L3Harris and Northrop Grumman recorded their highest share prices since 2022. General Dynamics, another defense contractor, reported a total return of 37%, slightly exceeding the S&P 500.
Furthermore, the iShares U.S. Aerospace and Defense fund, managed by BlackRock, reached a new all-time high last week, reflecting a 12-month gain of 43% and outperforming the S&P 500 by 33%. The Stockholm International Peace Research Institute (SIPRI) states that between 2019 and 2023, Israel accounted for 2.1% of total global arms imports, with the U.S. supplying 69% of these arms, while Germany contributed 30%. As Washington remains a dominant force in the global arms market, its military expenditures supporting Israel have surged, exceeding $23 billion within a single year.
