State Street SPDR S&P Aerospace & Defense ETF is trading 3.3% down today as investors pull back from economically sensitive and geopolitically exposed names.

  • Renewed U.S.–Iran tensions are boosting risk aversion, driving capital flows into safe havens rather than defense and industrial equities.
  • The decline follows the release of fresh manufacturing PMI data and mixed broader index performance, which weighed on the industrials sector.
  • Investors are reassessing exposure to defense-heavy names as macroeconomic jitters and geopolitical risks prompt a shift in market sentiment.