Global defense stocks rise after Trump proposes $1.5 trillion 2027 military budget

Global defense stocks rallied after U.S. President Donald Trump called for a $1.5 trillion defense budget for 2027, and several major defense firms posted mid-single-digit gains across U.S., European and Asian markets.

Global defense stocks rose on Thursday after U.S. President Donald Trump posted that the 2027 military budget should be $1.5 trillion. He framed the request as needed to strengthen the U.S. armed forces. The move spurred gains across U.S., European and some Asian defense companies. Authorities also reported the capture and indictment of Venezuelan President Nicolas Maduro and his wife; further procedural details were not specified. What is known: - President Trump wrote on Truth Social that the U.S. military budget for 2027 should be $1.5 trillion. - Northrop Grumman gained 6.8% in premarket trade, Lockheed Martin was about 6.7% higher, RTX rose 5.4%, and Kratos Defense increased 6.6%. - The Stoxx Europe Aerospace and Defense index added 1.4%; Renk and Leonardo initially moved more than 4% higher before paring gains to about 1.5% and 3.6% respectively. - Some Asian defense companies also rose, with Mitsubishi Heavy up 2.4% and Bharat Electronics up 0.3%. - U.S. authorities reported that Venezuelan President Nicolas Maduro and his wife were captured and that they had been indicted in New York; further legal or procedural steps were undetermined. Summary: The immediate market effect was upward pressure on defense-focused equities and aerospace indexes following the presidential post. Whether the proposed $1.5 trillion budget will advance through formal channels or how related geopolitical and legal reports will develop is undetermined at this time.