Yesterday, Donald Trump’s comments delivered a real rollercoaster ride for U.S. defense stocks. After an initial sell-off, with names like Lockheed Martin (LMT.US) and RTX Corp (RTX.US, formerly Raytheon) down by several percent, amid Trump's criticism on Truth Social the giants surged by as much as 5% or more shortly after the cash session closed. Today, gains are broad across the sector, from major primes to smaller defense players. What happened?
- At first, the U.S. President said he would not allow the largest defense contractors to pursue dividend-heavy policies and expensive share buybacks, instead pushing them to invest in building next-generation weapons manufacturing facilities.
- Investors viewed this type of intervention as a meaningful operational risk for the companies, a potential hit to their shareholder-return model, and a signal of higher capital expenditures (CapEx) that could weigh on profits.
- About an hour later, Trump added that thanks to revenue from trade tariffs, the U.S. defense budget in 2026 should reach USD 1.5 trillion, rather than USD 1 trillion as previously planned. That comment triggered an immediate reversal, with defense stocks quickly recovering their losses.
- Earlier, Trump had also pointed to RTX Corp, describing it as the contractor most reluctant to implement the U.S. Department of War’s suggestions, choosing instead to maintain an inflated dividend and buyback policy. This contributed to additional downside pressure in the stock. Those losses have now been more than reversed, and ahead of the U.S. open the shares are up nearly 5%, trading around USD 194 per share.
RTX Corp (RTX.US), H1 timeframe
Source: xStation5
US OPEN: Investors exercise caution in the face of uncertainty.
Oklo shares surged in a true “atomic open” on today’s session
Rio Tinto and Glencore shake up the mining market🚨 Giants negotiate merger 🤝
Morning wrap (09.01.2026)
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
