Trump's Bold Military Budget Proposal Sparks Stock Surge

President Trump announced a proposed $1.5 trillion U.S. military budget for 2027, significantly higher than the 2026 budget. The boost sent defense stocks soaring. Despite needing congressional approval, Trump's party seems likely to support it given recent geopolitical events and his party's narrow legislative control.

In a surprising move, former President Donald Trump has announced a staggering $1.5 trillion proposal for the U.S. military budget for 2027, a stark increase from the $901 billion approved for 2026. This bold proposition has already sent defense stocks soaring as investors anticipate increased profits.

While the budget increase would still require congressional authorization, Trump's Republicans, who hold narrow majorities in both the Senate and House, appear unlikely to oppose the plan. Trump communicated the decision through a post on Truth Social, citing extensive negotiations with key political figures amidst current global tensions.

Recent geopolitical developments, including the toppling of Nicolas Maduro in Venezuela by U.S. forces and discussions about acquiring Greenland, have heightened interest in a robust military budget. Following Trump's announcement, major defense contractors like Lockheed Martin, General Dynamics, and RTX saw significant stock price increases.

(With inputs from agencies.)