# Defense Stocks Drop as Midterms Threaten Trump's Military Spending

> Investors fear Democrats winning midterms could block Trump's $500 billion military spending plan.
- Title: Defense Stocks Drop as Midterms Threaten Trump's Military…
- Summary: Investors fear Democrats winning midterms could block Trump's $500 billion military spending plan. Defense stocks fell 16% as investors worry Democrats might…
- Keywords: defense stocks, midterms, trump, military spending, democrats, s&p 500, i shares aerospace defense etf, news, entertainment, Defense, Stocks, Drop
- Source: New York Post — https://nypost.com/2026/10/19/business/defense-stocks-plummet-as-investors-worry-possible-dem-midterms-win-could-thwart-trumps-spending-plans
- Published: 2026-10-19T21:02:58+00:00
- Read time: 1 min
- Topics: defense stocks, midterms, trump, military spending, democrats, s&p 500, i shares aerospace defense etf, news, entertainment
## Defense stocks plummet
Defense stocks have plummeted over the past few weeks as investors grow convinced Dems will emerge victorious in the midterm elections.
## ETF falls 16%
The iShares US Aerospace and Defense ETF, the largest fund in the sector, fell 16% between the start of July and mid-October.
## Dems gain ground
Democrats have taken the edge among early and mail-in voters, according to state election data.
## Trump's spending plan
Trump is angling to boost military spending by $500 billion, bringing annual defense spending from $1 trillion to $1.5 trillion.
## Investor concerns
Most top defense stocks traded in the red as investors bet worsening inflation, rising Treasury yields and a desire to reverse some of Trump's other budget cuts will keep members of Congress from backing the…
## Key takeaway

Defense stocks fell 16% as investors worry Democrats might thwart Trump's $500 billion military spending proposal.