Companies which saw share prices fall this week include aerospace manufacturers Lockheed Martin (-4.86%) and Northrop Grumman (-6.58%) as well as General Dynamics (-5.30%), according to Friday’s trading data.
Speaking at a White House press conference on Thursday, Trump said he planned to discuss a potential reduction in defense budgets with Russian President Vladimir Putin and Chinese leader Xi Jinping.
“At some point, when things settle down, I’m going to meet with China and I’m going to meet with Russia… and I’m going to say there’s no reason for us to be spending almost $1 trillion on the military… and I want to say let’s cut our military budget in half,”Trump said.
Defense firms have enjoyed increased demand for weapons and military equipment since the escalation of the Ukraine conflict in 2022. Lockheed Martin, the primary producer of the F-16 fighter jets and Patriot missile systems used in Ukraine, posted a 21% year-on-year increase in revenues in 2023.
The new US administration has so far sent mixed messages on military spending. Trump has tasked Elon Musk and his Department of Government Efficiency with cutting federal costs, including at the Pentagon. The president has also pushed for a quick resolution of the Ukraine conflict, announcing imminent talks with his Russian counterpart Vladimir Putin.
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