BUZZ-S&P 500 industrials set for worst month in over three years on conflict concerns

Reuters03-31
BUZZ-S&P 500 industrials set for worst month in over three years on conflict concerns

** S&P 500 industrial sector .SPLRCI is on track for its worst month in over 3 years at current levels

** Since the start of the Middle East conflict, sector has been the worst performer among the 11 S&P 500 sectors

** It has declined 10% in March, and is headed to break a streak of three straight months of gains

** Industrials, considered cyclical, are prone to disruptions during economic downturns

** Defense and aerospace firms Boeing BA.N, GE Aerospace, RTX RTX.N, Northrop Grumman NOC.N, Lockheed Martin LMT.N and L3 Harris LHX.N down between 5.7% and 18.4% in March, despite conflict typically boosting such shares due to increased spending expectations

** The S&P 500 aerospace and defense index .SPLRCAERO has fallen more than 11% in March, having hit a record high earlier this month

** Industrial manufacturers Eaton ETN.N, Emerson EMR.N and Ametek AME.N down between 6.5% and 15.4% in March

** Oil price-sensitive airlines have also come under pressure; United Airlines UAL.O and Southwest Airlines LUV.N down 18% and 25.2% respectively for the month, while Delta Air Lines DAL.N is down 1.8%

(Reporting by Avinash P in Bengaluru)

((Avinash.P@thomsonreuters.com;))

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