What Happened?
A number of stocks fell in the afternoon session after President Donald Trump said he called off what he described as a scheduled attack on Iran, citing "serious negotiations" underway toward a peace deal.
Defense names like RTX, Lockheed, Northrop, and General Dynamics tend to rally when geopolitical tensions escalate because investors anticipate larger weapons orders; when a strike gets called off, that same logic reverses, and traders take profits on the war premium.
Layered on top of this, rising long-end Treasury yields hurt capital-intensive industrials like Boeing because future cash flows from multi-decade aircraft order books get discounted more harshly. Combine "less war scare" with "more expensive money," and the sector lost two of the props that held it up all spring.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Aerospace company Rocket Lab (NASDAQ: RKLB) fell 2.3%. Is now the time to buy Rocket Lab? Access our full analysis report here, it’s free.
- Aerospace company AerSale (NASDAQ: ASLE) fell 2.6%. Is now the time to buy AerSale? Access our full analysis report here, it’s free.
Zooming In On AerSale (ASLE)
AerSale’s shares are not very volatile and have only had 8 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 11 days ago when the stock dropped 9.6% on the news that it reported first-quarter 2026 financial results that fell short of analyst expectations on both revenue and earnings.
Although revenue increased 7.4% year-over-year to $70.61 million, the result missed Wall Street's forecasts by a significant 31.1%. Additionally, the company's adjusted earnings per share of $0.00 was $0.03 below consensus estimates. While AerSale showed some improvement in its operating margin compared to the same quarter last year, the significant misses on both the top and bottom lines appeared to disappoint investors.
AerSale is down 16.7% since the beginning of the year, and at $6.02 per share, it is trading 33.2% below its 52-week high of $9 from August 2025. Investors who bought $1,000 worth of AerSale’s shares 5 years ago would now be looking at only $502.93.
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