U.S. equity indices pared losses in late trading after hitting intraday lows, with the S&P 500 closing 0.4% higher. Honeywell International Inc. (HON) announced progress on its planned spin-off of its aerospace and defense businesses, boosting investor sentiment.
- S&P 500 closed 0.4% higher at 5,287.32 after hitting intraday lows
- Honeywell (HON) advanced its split plan for aerospace and defense units
- VIX settled at 15.6, down from a session high of 17.8
- Crude oil (CL=F) rose 0.9% to $75.30 per barrel
- Defense & aerospace sector outperformed with a 1.2% gain
- Honeywell’s split proposal to be voted on in Q2 2026
Stock indices reversed early losses in the final trading hour, recovering from their worst levels of the session. The S&P 500 rose 0.4% to close at 5,287.32, while the Nasdaq Composite gained 0.3% to 16,442.11. The Dow Jones Industrial Average edged up 0.2% to 39,108.54, supported by a modest rebound in energy and defense-related stocks. Honeywell International (HON) contributed to the positive momentum after confirming it had submitted a detailed plan to shareholders for the separation of its aerospace and defense segments. The company intends to create two independent public companies, with the aerospace unit expected to retain a significant portion of its current revenue base. The proposal is set for a vote in the second quarter of 2026, with management projecting a transition period of 12 to 18 months. The move comes amid broader market volatility, as the CBOE Volatility Index (VIX) spiked to 17.8 earlier in the day—its highest level since January—before settling at 15.6 by close. Crude oil futures (CL=F) rose 0.9% to $75.30 per barrel, driven by OPEC+ supply discipline and renewed concerns over Middle East supply disruptions. Defense stocks, including HON, outperformed the broader market, with the S&P 500 Defense & Aerospace Index gaining 1.2%. The rally in equities was modest and largely confined to late trading, with most gains limited to sectors with exposure to defense and energy. Institutional traders focused on position adjustments ahead of the end of the month, while retail investors monitored the Honeywell split announcement for potential entry points in the upcoming spin-off structure.