Defense falls on Wall Street due to fear of lower spending
Trump's plan to raise half a trillion dollars in military spending is at risk as bipartisan support for a higher budget is weakening.
US Defense stocks have stumbled amid growing expectations of a Democratic landslide in the upcoming midterm elections, which could scupper President Trump's plans to increase military spending by $500,000 million. The iShares US Aerospace and Defense ETF has fallen 16% since early July, while the S&P 500 has risen 3.5%. Democrats are expected to win the House of Representatives but face a tough battle to gain control of the Senate, with 35 of 100 seats up for grabs.
Trump's proposal to raise annual defense spending from $1 trillion to $1.5 trillion was initially well-received by investors and executives, but relations between Defense Secretary Pete Hegseth and Congress have deteriorated.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
