Trump’s $1.5T “Dream Military” Push Sends Defense Stocks Into Absolute Goblin Mode

Remember that sweet, sweet tariff revenue Trump once said could maybe eliminate the IRS and even trickle down to us normies in the form of dividend checks? Yeah… go ahead and kiss that fairytale goodbye.

Because once again, Donnie Commander has decided to Make the Military Great Again… this time by calling for a $1.5 trillion U.S. defense budget in 2027. (I’m sure this has nothing to do with the fact we just took over Venezuela and Trump is eyeing another country the way I eye fried rice when it hits the table.) For context, the current defense budget is roughly $901 billion, which apparently now qualifies as rookie numbers.

And just like that, anything that even resembles making guns, ships, planes, tanks, missiles, or vaguely war-adjacent metal objects got hoovered up. Northrop Grumman popped about 8%, Lockheed Martin jumped roughly 7%, RTX tacked on around 5%, and Kratos Defense went fully nuts, ripping 12% higher. General Dynamics caught a bid too (because tanks remain undefeated in budget negotiations). 

(Source: CNBC)

Why the sudden lovefest with turning the already best military operation in the world into an even more powerful one? No one really knows other than Trump framing the move as necessary to build what he called the “Dream Military”... which may or may not be code for “we’re preparing to invade anywhere with oil, lithium, or a strategically inconvenient map.” 

Now according to Trump, tariffs are throwing off so much “tremendous income” that America can easily afford it. Just don’t bring up the fact that tariff revenue only brought in $195 billion in extra money last year.

What makes it even ironic is that just 24 hours earlier, defense stocks were getting smacked after Trump floated banning dividends and buybacks unless companies stepped up production and maintenance. The market heard “no buybacks” and briefly remembered it has principles. Then Trump said “$1.5 trillion,” and those principles were immediately pawned for Raytheon calls.

(Source: Business Insider)

Remember, this move matters even more when you consider that over the weekend, U.S. forces captured Venezuelan President Nicolas Maduro and his wife during a large-scale raid. 

Trump followed that up by announcing indefinite U.S. control over Venezuelan oil (30 to 50 million barrels, sanctioned and suddenly very American) plus a renewed obsession with acquiring Greenland (still not for sale, but Denmark is in absolute freakout mode).

Europe and Asia joined the party too. European aerospace and defense stocks marched higher across the board, while Mitsubishi Heavy Industries (+2%) and Bharat Electronics (+3%) caught sympathy bids in Asia (because freedom apparently travels well).

Let’s be honest, the second Donnie announced the Trump Class Golden Fleet battleships, we all should’ve realized the defense budget was about to be upped to “unlimited.”

At the time of publishing this article, Stocks.News doesn’t hold positions in companies mentioned in the article.