The article points out that the drone sector is broadly under pressure without company-specific news, with Ondas down 6% and Red Cat down 3%. This downturn reflects a spreading market risk aversion rather than changes in company fundamentals. The 10-year U.S. Treasury yield rose to 4.8%, while Brent crude surpassed $91 due to U.S.-Iran tensions. These macroeconomic factors collectively squeezed the valuations of unprofitable small-cap companies in the drone sector.