Defense shares stood out Thursday morning, buoyed by President Donald Trump’s push for sharply higher military spending, as U.S. stocks slipped on mixed economic signals.
The S&P 500 Index (SP500) was little changed by midmorning in New York after recently setting a record. The Nasdaq 100 Index (QQQ) fell about 0.6%, led by weakness in technology stocks.
Defense contractors rallied after Trump floated plans to lift U.S. military spending to $1.5 trillion in 2027.
Shares of Lockheed Martin (LMT), Northrop Grumman (NOC), L3Harris Technologies (LHX), General Dynamics (GD), Teledyne (TDY), Textron (TXT) and Kratos Defense & Security Solutions (KTOS) posted sharp gains.
The moves marked a reversal from a day earlier. On Wednesday, Trump signed an executive order targeting major U.S. defense contractors. The order calls for limits on stock buybacks, dividend payments and executive pay until companies increase factory and research investment.