AeroVironment Inc is trading 10.2% down at $183.65 as investors lock in gains following a sharp rally sparked by a significant U.S. Army contract award.
- The stock recently spiked on news of a $117.3 million firm-fixed-price deal to provide 82 P550 unmanned aircraft systems to the military.
- Today's decline is being exacerbated by broader market weakness in growth stocks as strong U.S. jobs data fuels "higher-for-longer" interest rate expectations.
- Traders are reassessing risk profiles across the defense sector as macroeconomic sentiment shifts toward a more hawkish Fed outlook.