Defense contractors posted sharp gains Thursday after President Donald Trump announced plans to raise U.S. military spending to $1.5 trillion in 2027, while the broader market moved in a narrow range amid mixed economic data. The S&P 500 added less than a point to close at 6,921.46 — remaining near its all-time high set earlier in the week — while the Dow Jones Industrial Average rose 270 points and the Nasdaq composite fell 104 points to 23,480.02.
The defense-sector rally illustrated how Trump’s sweeping geopolitical ambitions are reshaping capital flows, even as oil markets continued to whipsaw following last weekend’s U.S. military operation that ousted Venezuelan President Nicolás Maduro.
Defense contractors led Wall Street’s winners Thursday as President Donald Trump’s pledge to sharply expand U.S. military spending overshadowed a broad but directionless session, while oil prices posted their biggest gain in days amid continued uncertainty surrounding Venezuela.
L3Harris Technologies jumped 5.2%, Lockheed Martin climbed 4.3% and Northrop Grumman added 2.4% after Trump said he wants to increase annual military spending to $1.5 trillion in 2027 — up from $901 billion — toward building what he called the “Dream Military,” the Associated Press reported. The rally recovered losses from the prior session, when Trump had complained that defense contractors were making military equipment too slowly.
RTX lagged behind its rivals, rising just 0.8%. Trump singled out the company as the “slowest in increasing their volume,” the AP reported.
Trump also signed an executive order Wednesday directing the Pentagon to ensure future contracts require contractors to refrain from buying back their own stock during periods of underperformance on U.S. government contracts.
Broader market treads water
The overall market showed little conviction. The S&P 500 added 0.53 points to close at 6,921.46, sitting near its all-time high set earlier in the week. The Dow Jones Industrial Average gained 270.03 points, or 0.6%, to 49,266.11. The Nasdaq composite slid 104.26 points to 23,480.02, pressured by technology stocks.
Nvidia was the heaviest drag on the S&P 500, falling 2.2% and giving back a slice of its approximately 40% gain from the prior year.
Constellation Brands was a notable winner outside the defense sector, climbing 5.3% after the beer and wine company reported quarterly earnings that beat analyst expectations.
Mixed economic data offered little direction. The number of U.S. workers filing for unemployment benefits rose last week, a potential sign of increasing layoffs, but by no more than economists expected. Separate reports showed U.S. worker productivity improved by more than forecast during the summer, and the trade deficit narrowed unexpectedly in October. The yield on the 10-year Treasury edged up to 4.18% from 4.15% late Wednesday.
Oil extends volatile run
Crude prices continued their recent zigzag pattern. Benchmark U.S. crude climbed 3.2% to $57.76 per barrel, while Brent crude, the international standard, rose 3.4% to settle at $61.99 per barrel, the AP reported.
The swings reflect continued uncertainty following last weekend’s U.S. military operation that ousted Venezuelan President Nicolás Maduro. Venezuela holds potentially the world’s largest oil reserves, and substantial increases in its output could push prices lower. But analysts note that billions of dollars in infrastructure investment would likely be required before production could rise significantly, given the country’s aging oil facilities.
Trump’s stated ambitions extended beyond Venezuela. He has called in recent days for the United States to take over the Danish territory of Greenland for national security reasons and has suggested openness to military operations in Colombia.
International markets retreat
Asian equity markets closed lower ahead of the U.S. session. Japan’s Nikkei 225 dropped 1.6% and Hong Kong’s Hang Seng fell 1.2%. European indexes moved modestly.