Defense stocks rise as Trump calls for military spending hike
Global defense stocks rebounded on Thursday, extending gains after US President Donald Trump called for a $1.5 trillion defense budget for 2027.
“After long and difficult discussions with Senators, Congressmen, Secretaries, and other Political Representatives, I have determined that for the Good of our Country, especially in these very troubling and dangerous times, our 2027 Military Budget should be $1.5 Trillion, not $1 Trillion,” he wrote in a post on TruthSocial late Wednesday.
“This will allow us to build the ‘Dream Soldier’ that has long been our right, and more importantly, will keep us SAFE and SECURE no matter the enemy.”
Northrop Grumman It was up 6.8% in premarket trading Thursday. LockheedMartin last seen 6.7% higher, RTX 5.4% advanced and Kratos Defense increased by 6.6 percent.
The Stoxx European Aerospace and Defense index rose 1.4% in early trading Thursday. Color and Leonardo It initially led the European index, rising over 4%, but pared its gains throughout the session. They were last seen 1.5% and 3.6% higher respectively.
Some Asian defensive names were also on the rise. Mitsubishi Heavy increased by 2.4% and Bharat Electronics It gained 0.3%.
US forces captured Venezuelan President Nicolas Maduro and his wife during a large-scale night attack over the weekend. U.S. authorities said Saturday morning that the couple had been indicted on drug trafficking charges in New York.
Since then, Trump has said the United States will take control of Venezuelan oil indefinitely and renewed his rhetoric about buying Greenland.
According to Trump, 30 million to 50 million barrels of sanctioned Venezuelan oil will be transferred to the United States and sold at market prices. The profits will be controlled by him and used “to ensure that it is used for the benefit of the people of Venezuela and the United States.”
