Defense Stocks Fall After Democrats' Midterm Gains Trigger Worries of Tighter U.S. Military Spending
By Kelly Cloonan
Defense stocks slid after Democrats' victories in the midterm elections triggered fears of tighter U.S. military spending.
Shares of Lockheed Martin recently declined 4.3% to $611.79 on Wednesday. Northrop Grumman and RTX similarly fell, down about 3.9% and 3.4%, respectively. L3Harris Technologies is down 4.1%.
The declines come after Democrats took control of the Senate and House, with wins in battleground states and some traditionally red states.
The blue sweep has raised concerns among investors of tighter controls on military spending, which would weigh on defense contractors' businesses after a period of strong demand during President Trump's second term.
Trump has sought $1.5 trillion in defense spending for fiscal 2027. His approach to the war in Ukraine, as well as threats to quit NATO, have also prompted European nations to rearm.
In an interview, Trump told The Wall Street Journal that the war in Iran was partially to blame for widespread Republican losses but that he didn't regret launching the war.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
November 04, 2026 10:06 ET (15:06 GMT)
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