From BigGo Finance · BigGo Finance · · 1m 10s
US Defense Stocks Drop 16% Before Midterms
Defense stocks plunge 16% as election fears threaten Trump's $500bn military spending boost.
In brief
Defense stocks plunge 16% as election fears threaten Trump's $500bn military spending boost. US defense stocks fell 16% from early July to mid-October ahead of midterms, with fears that Democrats could derail Trump's $500 billion defense budget increase. Originally reported by BigGo Finance.
Defense Stocks Plunge
US defense stocks are tumbling ahead of the midterm elections.
16% Drop from Early July
The iShares US Aerospace & Defense ETF fell 16% from early July through mid-October.
S&P 500 Gains 3.5%
The S&P 500 rose 3.5% over the same period.
Trump's $500bn Defense Plan
President Donald Trump's planned $500 billion defense spending increase could be derailed by Democrats.
Stocks Fall Sharply
Lockheed Martin is down more than 20% from its early-March peak, while Northrop Grumman and L3Harris have fallen 35% and 36%, respectively.
Analyst Concerns
Some analysts note bipartisan support for replenishing missile stockpiles remains intact despite election fears.
What Happens Next
Defense stocks rebounded recently on third-quarter earnings expectations and as money rotates out of technology shares.
What to remember
US defense stocks fell 16% from early July to mid-October ahead of midterms, with fears that Democrats could derail Trump's $500 billion defense budget increase.
