Defense shares decreased after Trump says the Pentagon spends half

Defense shares decreased sharply on Thursday afternoon after President Donald Trump suggested that the United States could reduce defense spending on a large scale.

Trump said on Thursday at the White House, the United States can reduce defensive spending in some point in the future. The comments came in the context of Trump to discuss a possible conference on defensive spending with China and Russia.

“At some point, when things settle, I will meet with China and I will meet with Russia, especially these two, and I will say that there is no reason to spend nearly one dollar and Trump said:” A trillion on the army … and I will say that we can spend this on other things. ” .

“When we correct everything, one of the first meetings that I want to face is with President Xi from China and President Putin from Russia, and I would like to say let’s lower our military budget to half. We can do this, and I think we will be able to do so.”

Defense shares, which were above the day earlier, decreased rapidly. shares Lockheed Martin 1.6 % decreased, Northrop Grouman 3.4 % drowned and General dynamics It is 2.1 %.

He sent Trump Mixed messages on military spending Throughout his campaign 2024 and in the early days of his presidency.

On the one hand, Trump enjoys Elon Musk and the so -called Ministry of Governmental efficiency to find places to reduce costs throughout the government. Trump has also pushed a quick solution from War in UkraineThat included the purchase of a lot of American weapons.

On the other hand, it has described the importance of a strong army and an executive order to explore the construction of the “American Iron Dome”. Trump also said on Thursday that the United States has “the greatest military equipment in the world.”

“At the present time, people are confused by a number of different crossing signs” about defensive spending, “Roman Shuwaiser, TD Cowen Policy Analyst, told CNBC last week.