Defense actions fall after Trump says that pentagon’s expense could be reduced by half

Defense actions fell sharply on Thursday afternoon after President Donald Trump suggested that the United States could massively reduce defense expense.

Trump said the United States could reduce defense spending to half, according to Reuters. The comments seemed to be in Trump’s context discussing a possible conference on defense spending with China and Russia.

Defense stocks that had been higher earlier in the day fell quickly. Actions of Lockheed Martin 1.5%fell, Northrop Grumman 2.6% sank and General dynamics It also lost 2.6%.

Trump has sent Mixed messages about military spending Throughout his 2024 campaign and in the first days of his presidency.

On the one hand, Trump has enlisted Elon Musk and the so -called government efficiency department to find places to reduce costs throughout the government. Trump has also pressed for a rapid resolution of the War in Ukrainewhich has involved the purchase of many American weapons.

On the other hand, it has promoted the importance of having a strong and signed army an executive order to explore the construction of an antimile defense system “Iron dome of America”.

“At this time, people are confused by several transverse producers,” said TD Cowen’s policy analyst Roman Schweizer, CNBC last week.