Tema Space Innovators ETF is trading 3.2% higher as aerospace and defense names catch a bid amid escalating Middle East tensions and the closure of the Strait of Hormuz, which is lifting energy prices and demand for defense capacity.
- Geopolitical instability is driving increased demand expectations for defense and logistics capacity while simultaneously lifting energy prices.
- A broad risk-on tone following recent CPI and PPI data is supporting cyclical and rate-sensitive sectors like industrials, despite lingering inflation and Fed uncertainty.