# US Defense Stocks Drop 16% Before Midterms

> Defense stocks plunge 16% as election fears threaten Trump's $500bn military spending boost.
- Title: US Defense Stocks Drop 16% Before Midterms · BigGo Finance
- Summary: 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…
- Keywords: us defense stocks, midterm elections, trump military spending, democratic party, lockheed martin, northrop grumman, l3harris, f-35, golden dome, senate, house elections, defense budget
- Source: BigGo Finance — https://finance.biggo.com/news/b960e22f-0dde-45d7-af71-5bd928692c12
- Author: BigGo Finance
- Published: 2026-10-19T20:55:14+00:00
- Read time: 1 min
- Topics: us defense stocks, midterm elections, trump military spending, democratic party, lockheed martin, northrop grumman, l3harris, f-35, golden dome, senate, house elections, defense budget
## 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.
## Key takeaway

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.