StocksMedium•29 September 2026•
1 min read
Defense Stocks Enter Bear Market Amid Longest Losing Streak Since 2011
Key Facts
1Defense stocks are heading for a seventh consecutive weekly loss, the longest losing streak for the XAR ETF since 2011.
2Iran peace talks and a stalled defense budget have erased all year-to-date gains for the sector in 2026.
Defense stocks are heading for a seventh consecutive weekly loss, marking the longest losing streak for the XAR ETF since 2011. Benzinga reported that the sector has officially entered bear market territory, with sustained selling pressure erasing all gains achieved since the start of 2026.
The downturn is driven by geopolitical and fiscal factors, as peace talks with Iran reduced risk premiums while a stalled defense budget created domestic fiscal pressure. The XAR ETF saw its year-to-date performance vanish by September 29, 2026, amid a lack of positive price catalysts in recent trading sessions.