Lockheed Martin Stock Volatility Amid Trump’s Defense Budget Remarks
Lockheed Martin shares experienced significant volatility following conflicting statements from former President Donald TRUMP regarding defense sector policies. The stock initially plunged nearly 5% during Wednesday's trading session after Trump proposed banning dividends and buybacks for defense contractors via Truth Social posts.
Defense stocks broadly retreated as Trump criticized manufacturers for prioritizing shareholder returns over equipment production. "Military equipment isn't being made fast enough," Trump declared, sending shockwaves through the sector.
The narrative shifted dramatically in after-hours trading when Trump floated a $1.5 trillion defense budget for 2027—50% higher than previously discussed figures. Lockheed Martin shares surged 7% on the news, erasing the day's losses and demonstrating the market's sensitivity to defense spending forecasts.