Top 10 Stocks That Rise During War
Markets don’t fear war. They fear uncertainty. When conflict breaks out without warning, the initial response is often a sharp sell-off. Pearl Harbor, the Korean War, and the September 11 attacks all triggered sudden, one-day declines driven by shock.
However, this initial volatility is rarely the full story. To understand what happens to the stock market during war, investors need to look beyond the immediate shock and focus on how markets reprice in response to new realities.
While broad indexes may struggle at the start, certain sectors have historically shown resilience during such periods. These are the top 10 stocks that rise during war, along with strategies to navigate periods of geopolitical stress.
How Does War Affect the Stock Market?
Markets often decline before conflict begins, then recover once events become more measurable and easier to price. For example, the S&P 500 fell 12.3% in the three months leading up to World War II, then gained 16.9% over the course of the war.
As recovery takes shape, leadership often shifts toward sectors most closely tied to wartime demand. Defense companies tend to benefit first as government spending rises on weapons, logistics, and support. Energy, commodities, and gold can also move higher as supply concerns build.
A new development is the surge in defensive technology and cybersecurity stocks. As wars today also involve cyber threats and intelligence needs, cybersecurity and AI firms have emerged among the best stocks for war, reflecting the growing demand for digital defense.
Top 10 Stocks That Rise During War
Drawing on market history, company backlogs, and the sectors that typically attract capital during geopolitical shocks, these 10 stocks appear among the best positioned for a future conflict.
1. Lockheed Martin (LMT)
Lockheed Martin is widely viewed as a defense bellwether. As the world’s largest contractor, its performance often tracks global military activity.
In 2026, the company reported a $194 billion backlog, with about 74% of revenue tied to long-term U.S. Department of Defense contracts. Its stock rose more than 49% from 2025 levels, reaching $676.70 in March 2026.
2. RTX Corporation (RTX)
Formerly Raytheon, RTX Corporation focuses on missile defense and aerospace systems, which are in high demand during active conflict. On the day Operation Epic Fury began, RTX shares rose 4.7%, tracking the immediate shift toward companies engaged in active defense.
3. Northrop Grumman (NOC)
For investors looking beyond traditional platforms, Northrop Grumman offers exposure to some of the most strategic parts of modern defense.
Its Integrated Battle Command System has seen a 20% increase in international demand as nations upgrade coordinated defense networks. The stock also reacted strongly to the 2026 strikes, jumping 6% to $768.02 in a single session.
4. General Dynamics (GD)
General Dynamics is a diversified defense giant that supplies the U.S. Navy with nuclear-powered submarines and the U.S. Army with combat vehicles, such as the M1 Abrams tank. The company also provides mission support services and intelligence solutions through its information technology segments.
As of 2026, General Dynamics maintained a $118 billion backlog, with 69% of its revenue coming from the U.S. government.
5. ExxonMobil (XOM)
When war threatens energy supply, integrated oil majors often become natural portfolio hedges. ExxonMobil fits that role well. During the 2026 Iran conflict, Exxon’s stock climbed 4 to 5% in a single day as Brent crude surged.
Its massive market value and end-to-end integration allow it to buffer against market swings while capturing the “geopolitical risk premium” that emerges when the Strait of Hormuz is threatened.
6. Chevron (CVX)
Chevron’s U.S.-based production, particularly in the Permian Basin, offers insulation from regional disruptions. Its shares rose 23% in early March 2026 as investors favored a stable domestic supply. This positioning makes it among the best stocks for war, especially during periods of instability in the Middle East.
7. Cheniere Energy (LNG)
Cheniere is the leading U.S. liquefied natural gas exporter. When the 2026 conflict disrupted 17% of Qatar’s LNG exports, European and Asian nations turned to Cheniere to fill the void. As a result, Cheniere’s stock traded up nearly 13% in the two weeks following the Iranian strikes on Qatari gas facilities.
8. Palo Alto Networks (PANW)
As conflict expands into digital infrastructure, cybersecurity demand follows. Palo Alto Networks has been active in identifying cyber threats linked to geopolitical tensions. Shares rose nearly 7% in early March 2026 as governments and enterprises increased spending on network protection.
9. CrowdStrike (CRWD)
The same cybersecurity trend supports CrowdStrike. Its Falcon platform, built for real-time detection and response, has seen rapid adoption. The company reported 75% year-over-year growth, reflecting expanding demand for real-time threat detection.
10. Newmont (NEM)
Gold has long served as a safe-haven asset during periods of geopolitical stress. As the world’s largest gold producer, Newmont benefits from this trend. With gold hitting record highs above $5,500 per ounce in early 2026, Newmont’s earnings have surged 40.7% year over year, pushing the stock toward its 52-week high of $134.88.
Succeeding as an Investor During War
War introduces volatility, but it also creates identifiable opportunities. For investors, the goal is not to react to every headline, but to focus on where capital and government spending are likely to flow.
- Capitalize on Pre-War Volatility: Initial market weakness can create buying opportunities, especially when high-quality companies become temporarily undervalued during broad risk-off selling.
- Prioritize Backlog-Driven Businesses: Defense contractors with long-term government contracts and large backlogs tend to offer more predictable revenue. Their performance is tied to sustained military spending rather than consumer demand.
- Expand into Digital Defense: Cybersecurity and AI firms have become increasingly important as conflict expands into digital infrastructure, intelligence, and network defense.
- Use Energy as a Hedge: Domestic energy producers can benefit from rising crude prices while facing less direct geopolitical exposure than overseas operators.
In Uncertain Markets, Timing Favors the Informed
War may disrupt markets, but it also creates identifiable opportunities for investors who can track sector rotation in real time. Briefing.com helps you do that with timely market analysis, earnings coverage, and actionable sector commentary.
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