XAR is trading 6% higher in after-hours sessions as defense and aerospace names within the industrials sector react to escalating geopolitical tensions and new production agreements.

  • Geopolitical risks have intensified following a declaration that the U.S.-Iran ceasefire is over, driving expectations for significantly higher demand for missile and defense systems.
  • Sentiment is further bolstered by Lockheed Martin’s new ATACMS production venture in Germany, which is lifting key defense-focused holdings within the ETF.