U.S. Defense Stocks Rally After Trump Proposes $1.5 Trillion Military Budget

U.S. defense stocks jumped sharply on Thursday as investors reacted to former President Donald Trump’s call for a dramatic expansion of the nation’s military budget. Trump proposed increasing the U.S. defense budget for fiscal year 2027 to $1.5 trillion, roughly a 50% increase from the roughly $901 billion approved for 2026, arguing the boost is needed to strengthen national security amid global tensions. Major defense contractors saw strong gains: shares of Northrop Grumman surged around 9%, Lockheed Martin climbed nearly 8%, and other firms such as RTX and L3Harris posted notable advances. The broader aerospace and defense index reached record levels as traders priced in expectations of increased government spending. Trump also criticized defense firms for prioritizing dividends and stock buybacks over timely production, issuing orders to limit such financial practices until companies deliver results, a stance that stoked volatility in recent sessions. Despite questions from analysts about political and fiscal obstacles to such a large budget increase, markets responded positively to the potential for elevated defense-sector demand. #DefenseStocks #TrumpBudget #MilitarySpending #WallStreet #SlimScan #GrowthStocks #CANSLIM