Executive Mosaic’s GovCon Index slumped 6.2% to $5,254.73, its largest one-day loss since the launch in December 2023. The index lost ground on fears of sweeping changes in the federal government contracting industry in 2025 under a new administration. Wall Street’s top three benchmarks ended lower Thursday.
The post-election rally could be over as the Dow Jones Industrial Average (-0.47%) and S&P 500 (-0.60%) fell for the second consecutive trading session. The tech-Nasdaq Composite (-0.64%) closed at a one-week low.
Heavy beating
Fluor Corporation (NYSE: FLR) was the only GovCon Index constituent standing after Thursday’s sharp selloff with +0.93%. Science Applications International Corporation (Nasdaq: SAIC) and KBR (NYSE: KBR), the worst performers, plunged more than 14%.
Top defense stocks suffered a heavy beating because of a possible shakeup at the Pentagon. Leidos (NYSE: LDOS) and Booz Allen Hamilton (NYSE: BAH) fell -13.6% and -10.13%, respectively. Only Carlyle Group (Nasdaq: CG) had less than a 1% percent drop.
Lockheed Martin (NYSE: LMT), a likely beneficiary of higher defense spending, declined 3.36%. The US Army awarded the aerospace and defense company a $139 million modification to a contract for Stinger fuse/warhead body assemblies.
No rush to cut rates
US Fed chairman Jerome Powell spoke at a Dallas event Thursday. He said the labor market remains in solid condition, and inflation eased considerably from its peak in June 2022. However, he added, “The economy is not sending signals that we need to be in a hurry to lower rates.” His comments lowered expectations of a December rate cut.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,254.73 | -325.73 | -6.20% |
| Dow Jones Industrial Average | 43,750.86 | -207.33 | -0.47% |
| NASDAQ | 19,107.65 | -123.07 | -0.64% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| FLR | 50.8 | 0.47 | 0.93% |
| CG | 51.09 | -0.25 | -0.49% |
| HON | 230.67 | -2.40 | -1.03% |
| BA | 138.14 | -1.83 | -1.31% |
| TXT | 86.1 | -1.47 | -1.68% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| FLR | 50.8 | 0.47 | 0.93% |
| CG | 51.09 | -0.25 | -0.49% |
| VVX | 59.42 | -1.25 | -2.06% |
| TXT | 86.1 | -1.47 | -1.68% |
| PLTR | 59.18 | -1.52 | -2.50% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| SAIC | 125.91 | -22.10 | -14.93% |
| KBR | 60.16 | -9.81 | -14.02% |
| LDOS | 167.96 | -26.44 | -13.60% |
| TTEK | 40.96 | -6.39 | -13.50% |
| PSN | 100.28 | -11.73 | -10.47% |
