Stock Movers Lockeed Martin Gains, American Airlines Drops, Nvidia Jumps on News it Will Invest Billions in Data Center Optics Companies
Mar 2, 2026
Markets react to new Middle East tensions as defense names rally and energy stocks climb. Airlines and travel firms slide on worries about fuel costs and demand. A major chip maker jumps after committing billions to data center optics firms to support AI infrastructure.
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Airlines Suffer Triple Whammy From Middle East Conflict
- Airline stocks face a triple hit from rising jet fuel, weaker consumer travel demand, and regional travel disruption.
- Jeffries estimates a 5% change in jet fuel projection swings American Airlines EPS by 35%, helping explain AAL's >4% drop and 20% year-to-date fall.
Defense Stocks Rally On Geopolitical Risk
- Defense stocks rallied as investors rotate into perceived safe or beneficiary sectors amid new Middle East tensions.
- Lockheed Martin climbed about 4% (adjusted for dividend trading) and peers like Northrop also gained, with Truist citing potential push toward $1.5 trillion US defense spending by 2027.
Nvidia Invests $4 Billion To Secure AI Optics Supply
- Nvidia gained after announcing a $4 billion investment into two data center optics firms critical for AI infrastructure.
- The deal splits $2 billion each to Lumentum and Coherent in multi-year investments, lifting NVDA roughly 1.9% despite broader slumps.