TLDR
- RTX’s Raytheon division won a $22.9 billion, seven-year contract to scale up Tomahawk cruise missile production
- Micron gained around 6% and Sandisk jumped roughly 11% on strong AI memory demand optimism
- Anthropic’s forecast of up to $200 billion in 2028 revenue boosted Nvidia and AI-related stocks
- L3Harris fell after CEO Christopher Kubasik was removed following an internal conduct investigation
- Fed rate-hike odds for September dropped from 55% to 31% after softer inflation and jobs data
RTX Lands $22.9 Billion Missile Deal
RTX’s Raytheon division has secured a $22.9 billion, seven-year contract from the U.S. military to ramp up production of Tomahawk cruise missiles.
Under the deal, Raytheon is expected to increase annual production from around 60 missiles to more than 1,000 per year.
The contract is part of a wider Pentagon push to rebuild weapons stockpiles and expand U.S. missile production capacity.
Micron and Sandisk Rally on AI Demand
Memory chip stocks moved sharply higher on Monday. Micron gained around 6% and Sandisk jumped roughly 11%.
Western Digital and Seagate also traded higher as confidence in AI-driven memory demand grew.
AI data centers need large amounts of high-performance memory to run alongside GPUs, which puts Micron among the more direct beneficiaries of the AI hardware buildout.
Investors are also growing more confident that the memory sector could see a longer period of strong pricing, rather than the usual boom-and-bust cycle.
Anthropic Forecast Lifts Nvidia
Nvidia and other AI stocks got a boost after new details about Anthropic’s growth expectations emerged.
The AI company is reportedly forecasting between $190 billion and $200 billion in revenue by 2028. That compares to an annualized run rate of roughly $47 billion disclosed earlier this year.
If those numbers are close to accurate, the demand for GPUs, servers and data center capacity could remain very strong for years ahead.
Nvidia stands out as one of the clearest potential beneficiaries if Anthropic and companies like it continue to scale at that pace.
L3Harris CEO Exits After Conduct Review
L3Harris fell Monday after the defense contractor announced the immediate departure of Chairman and CEO Christopher Kubasik.
The company said an internal investigation found conduct that was not consistent with its code of conduct. It added that the issue did not affect financial reporting, operations or customer relationships.
Sam Mehta, previously the head of the company’s Space and Mission Systems segment, has been named the new CEO.
L3Harris reaffirmed its 2026 financial outlook despite the leadership change, which helped limit some of the market reaction.
Fed Rate Hike Odds Fall Sharply
Markets are now pricing in roughly a 31% chance of a Federal Reserve rate hike in September, down from about 55% the prior week.
The drop comes after softer inflation data, weaker retail sales, and signs the labor market is slowing.
A Reuters poll from August 12 to 17 found most economists expect the Fed to hold its benchmark rate at 3.50% to 3.75% through the end of 2026.
Lower rate expectations tend to support valuations for technology and growth stocks, adding another tailwind alongside ongoing AI enthusiasm.
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