Global defense stocks surge after Trump calls for $1.5 trillion military budget in 2027
Published Thu, Jan 8 2026
4:27 AM EST
Updated 2 Min Ago
Tasmin LockwoodWATCH LIVEKey Points
- U.S. and European defense stocks were up Thursday.
- It comes as President Donald Trump called for a $1.5 trillion defense budget in 2027.
- "This will allow us to build the "Dream Military" that we have long been entitled to, and, more importantly, that will keep us SAFE and SECURE, regardless of foe," Trump wrote on Truth Social.
Global defense stocks rallied on Thursday, extending gains after U.S. President Donald Trump called for a $1.5 trillion defense budget in 2027.
"After the long and difficult negotiations with Senators, Congressmen, Secretaries, and other Political Representatives, I have determined that, for the Good of our Country, especially in these very troubled and dangerous times, our Military Budget for the year 2027 should not be $1 Trillion Dollars, rather $1.5 Trillion Dollars," he wrote in a TruthSocial post late Wednesday.
"This will allow us to build the "Dream Military" that we have long been entitled to, and, more importantly, that will keep us SAFE and SECURE, regardless of foe."
Northrop Grumman gained 6.8% in premarket trade on Thursday, Lockheed Martin was last seen 6.7% higher, RTX advanced 5.4%, and Kratos Defense was up 6.6%.
The Stoxx Europe Aerospace and Defense index added 1.4% in early dealmaking on Thursday. Renk and Leonardo initially led the European benchmark, moving more than 4% higher, but pared gains through the session. They were last seen at 1.5% and 3.6% higher, respectively.
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