Select STOXX Europe Aerospace & Defense ETF is trading 6.4% down at $39.56 today, driven by a sharp reversal in European aerospace and defense names following strong year-to-date gains.

  • The decline appears to be sector-specific rather than market-wide, as major U.S. equity futures are showing only marginal losses.
  • Market sentiment is shifting regarding geopolitical risk premiums and future defense-spending expectations, prompting a pullback in the sector.