Defense stockpiles rise as Trump calls for increased military spending

Global defense stocks rebounded on Thursday, extending their gains after US President Donald Trump called for a $1.5 trillion defense budget in 2027.

“After long and difficult negotiations with Senators, Congressmen, Secretaries, and other political officials, 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, but rather $1.5 trillion,” he wrote in a TruthSocial article Wednesday evening.

“This will allow us to build the ‘dream army’ that we have long been entitled to and, more importantly, that will keep us safe, no matter the enemy.”

Northrop Grumman gained 8.3% in premarket trading Thursday, Lockheed-Martin was last seen up 7.9%, RTX grew by 4.8%, and Defense of Kratos was up 12%.

The Stoxx Europe Aerospace and Defense index gained 1.1%. Color And Leonard initially topped the pan-European Stoxx 600 index, rising more than 4%, but pared its gains throughout the session. They were last seen at 2.6% and 2.7% higher, respectively.

Some Asian defense names were also up, with Mitsubishi Heavy up 2.4% and Bharat Electronics gaining 0.3%.

US forces captured Venezuelan President Nicolas Maduro and his wife in a large-scale nighttime attack over the weekend. American authorities announced on Saturday morning that the couple had been indicted in New York on drug trafficking charges.

Since then, Trump said that the United States will take control of Venezuelan oil indefinitely and renewed his rhetoric on the acquisition of Greenland.

Some 30 to 50 million barrels of sanctioned Venezuelan oil will be transferred to the United States, by Trumpwhich will be sold at market prices. The profits will be controlled by him and will be used “to ensure that they benefit the people of Venezuela and the United States.”