Global defense stocks rose after Trump’s call to increase the U.S. military budget to $1.5 trillion for 2027. U.S. defense companies rebounded, with Northrop Grumman and Lockheed Martin up 7%. European defense companies saw gains before losing steam. Geopolitical tensions continue to drive the market. BAE Systems and other UK defense firms may benefit.

Trump threatens to block dividends and buybacks for defense contractors like RTX. Lockheed Martin, Northrop Grumman, L3Harris, General Dynamics, and RTX had dividend yields around 1.9% and bought back 1.8% of their market caps. The order could lead to a shift towards UK defense companies. Average S&P 500 dividend yield is 1.37%.

Read more at Yahoo Finance: Global defense stocks advance after Trump calls for higher US military budget