Global defense stocks rose on Thursday after U.S. President Donald Trump called for a $1.5 trillion defense budget cut in 2027.
“After long and difficult discussions with senators, congressmen, secretaries and other political representatives, I have decided that for the good of our country, especially during this very difficult and dangerous time, our military budget for 2027 should be $1.5 trillion, not $1 trillion,” he wrote on Wednesday.
“It will allow us to build the ‘Dream Army’ we have long been entitled to, and more importantly, keep us SAFE and SECURE regardless of the enemy.”
Northrop Grumman Up 6.8% in premarket trading on Thursday, Lockheed Martin last time it was higher by 6.7%, RTX increased by 5.4% and Defense of Kratos increased by 6.6%.
The Stoxx Europe Aerospace and Defense index added 1.4% in early trade on Thursday. Rank and Leonardo initially led the European benchmark, moving up more than 4%, but pared gains through the session. They were last up 1.5% and 3.6% respectively.
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