Shares of Rocket Lab USA (RKLB) surged over 5% in the pre-market session on Monday, outperforming the broader market. This upward momentum comes following the announcement that Rocket Lab has secured a significant contract from the US Department of Defense.

Kratos Defense & Security Solutions, the lead contractor, revealed that it was awarded a five-year, $1.45 billion contract under the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) 2.0 program. Rocket Lab will serve as a subcontractor, providing hypersonic flight testing services, including systems engineering, integration, testing, and air launch services.

The contract aims to increase hypersonic flight test capacity and accelerate the development and deployment of hypersonic technologies, which are critical for national security. As a key player in this project, Rocket Lab's involvement has boosted investor confidence, driving the stock's remarkable pre-market performance.