U.S. weapons maker Lockheed Martin Corp. and Israeli defense contractor Rafael on Monday said they will team up to develop a high-energy laser system to defend against aerial attacks.

The system will be based on ” Iron Beam,” a laser missile-defense system that Rafael has been developing with Israel’s Defense Ministry.

The Iron Beam has undergone a series of successful tests this year and is expected to be rolled out over the coming decade.

The joint product will be geared toward the American and other markets. Development, testing, and manufacturing will take place both in the U.S. and Israel, the companies said.

The state-owned Rafael designed “Iron Beam” to complement a series of aerial defense systems used by Israel, including the highly effective yet more costly rocket-intercepting Iron Dome.

Stocks closed lower on Wall Street and Treasury yields rose after surprisingly strong economic reports highlighted the Federal Reserve’s difficult fight against inflation.

The S&P 500 fell 1.8% Monday. The Dow Jones Industrial Average lost 1.4% and the tech-heavy Nasdaq gave back 1.9%. Small-company stocks fell even more.

The services sector, which makes up the biggest part of the U.S. economy, showed surprising growth in November.

“It’s more of that ‘good news is bad news,’” said Tom Martin, senior portfolio manager at Globalt Investments. The latest economic data “bolsters the idea that rates are going to be higher.”