Defense Spending Projected To Rise With Deficit at 6.6% Of GDP
Published . Updated .
Trump's FY2027 budget seeks $1,154 billion for defense and deeper nondefense cuts. Read the CRS analysis of the deficit outlook and what it means today.
Directly affected
- No company is named in this report.
Indirectly affected
- ITA iShares U.S. Aerospace & Defense ETF-6.7% 30d
iShares U.S. Aerospace & Defense ETF: it holds defense and aerospace contractors. Linked by “defense” (defense) in this story.
- XAR SPDR S&P Aerospace & Defense ETF-10.2% 30d
SPDR S&P Aerospace & Defense ETF: it holds defense and aerospace contractors. Linked by “defense” (defense) in this story.
- TLT iShares 20+ Year Treasury Bond ETF-1.8% 30d
iShares 20+ Year Treasury Bond ETF: Treasury bond prices move with interest-rate expectations. Linked by “deficit” (US interest rates) in this story.
- LMT Lockheed Martin+14.2% 30d
Lockheed Martin (guided missiles and space vehicles and parts): defense contractors gain when military spending rises. Linked by “defense” (defense) in this story.
- RTX Rtx-2.2% 6d
Rtx (aircraft engines and engine parts): defense contractors gain when military spending rises. Linked by “defense” (defense) in this story.
- NOC Northrop Grumman+5.1% 30d
Northrop Grumman (search, detection, navigation, guidance, aeronautical sys): defense contractors gain when military spending rises. Linked by “defense” (defense) in this story.
- GD General Dynamics-2.1% 30d
General Dynamics (ship and boat building and repairing): defense contractors gain when military spending rises. Linked by “defense” (defense) in this story.
- JPM JPMorgan Chase-5.3% 30d
JPMorgan Chase (national commercial banks): rate changes move lenders' margins and borrowers' demand. Linked by “deficit” (US interest rates) in this story.
Price reaction, T-5 to T+3
| Ticker | T-5 | T-3 | T-1 | T0 | T+1 | T+2 | T+3 |
|---|---|---|---|---|---|---|---|
| ITA | +2.64% | +1.68% | base | +1.63% | after close | after close | after close |
| XAR | +2.49% | +2.16% | base | +1.64% | after close | after close | after close |
| TLT | -2.31% | -1.35% | base | +0.66% | after close | after close | after close |
| LMT | -9.31% | -8.71% | base | +3.09% | after close | after close | after close |
| RTX | +0.57% | +0.33% | base | +2.10% | after close | after close | after close |
| NOC | -7.45% | -2.17% | base | +1.53% | after close | after close | after close |
| GD | -2.30% | -1.30% | base | +1.73% | after close | after close | after close |
| JPMNo price data for this ticker | — | — | — | — | — | — | — |
Closing-price change versus T-1, the last close before the story. T0 to T+3 fill in after each market close. Prices: Alpaca IEX.
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Defense Spending Projected To Rise With Deficit at 6.6% Of GDP Legis1
Source: Legis1
The price since 26 Oct 2026: IShares U.S. Aerospace & Defense ETF (ITA) versus the S&P 500
| Company | When | Move | Status |
|---|---|---|---|
| General Dynamics (GD) | that day | +1.73% | still updating |
| General Dynamics (GD) | three days earlier | -1.30% | final price |
| General Dynamics (GD) | five days earlier | -2.30% | final price |
| IShares U.S. Aerospace & Defense ETF (ITA) | that day | +1.63% | still updating |
| IShares U.S. Aerospace & Defense ETF (ITA) | three days earlier | +1.68% | final price |
| IShares U.S. Aerospace & Defense ETF (ITA) | five days earlier | +2.64% | final price |
| Lockheed Martin (LMT) | that day | +3.09% | still updating |
| Lockheed Martin (LMT) | three days earlier | -8.71% | final price |
| Lockheed Martin (LMT) | five days earlier | -9.31% | final price |
| Northrop Grumman (NOC) | that day | +1.53% | still updating |
| Northrop Grumman (NOC) | three days earlier | -2.17% | final price |
| Northrop Grumman (NOC) | five days earlier | -7.45% | final price |
| Rtx (RTX) | that day | +2.10% | still updating |
| Rtx (RTX) | three days earlier | +0.33% | final price |
| Rtx (RTX) | five days earlier | +0.57% | final price |
| Ishares Tr (TLT) | that day | +0.66% | still updating |
| Ishares Tr (TLT) | three days earlier | -1.35% | final price |
| Ishares Tr (TLT) | five days earlier | -2.31% | final price |
| Spdr Series Trust (XAR) | that day | +1.64% | still updating |
| Spdr Series Trust (XAR) | three days earlier | +2.16% | final price |
| Spdr Series Trust (XAR) | five days earlier | +2.49% | final price |
Trades by members of Congress and officials in the stocks in this story
- Rep. Kevin Hern sold Lockheed Martin (LMT) (jointly held), worth $15,001 - $50,000 on 23 Sep 2026. That is 33 days before publication. Filed 13 Oct 2026. View the filing.
- Rep. Kevin Hern sold Lockheed Martin (LMT) (jointly held), worth $15,001 - $50,000 on 23 Sep 2026. That is 33 days before publication. Filed 13 Oct 2026. View the filing.
- Rep. Kevin Hern sold Lockheed Martin (LMT) (jointly held), worth $15,001 - $50,000 on 17 Sep 2026. That is 39 days before publication. Filed 13 Oct 2026. View the filing.
- Donald J Trump, an executive branch official, sold Rtx (RTX), worth $100,001 - $250,000 on 31 Jul 2026. That is 87 days before publication. Filed 22 Sep 2026. View the filing.
- Sen. Sheldon Whitehouse sold Jpmorgan Chase (JPM) (held by a spouse), worth $15,001 - $50,000 on 4 Sep 2026. That is 52 days before publication. Filed 1 Oct 2026. View the filing.
- Sen. Sheldon Whitehouse sold Jpmorgan Chase (JPM), worth $15,001 - $50,000 on 4 Sep 2026. That is 52 days before publication. Filed 1 Oct 2026. View the filing.
- Rep. Rohit Khanna bought Jpmorgan Chase (JPM) (held by a spouse), worth $100,001 - $250,000 on 27 Aug 2026. That is 60 days before publication. Filed 4 Sep 2026. View the filing.
Public disclosure filings, not a recommendation. The filing link is the source document. News use of these reports still sits under 5 U.S.C. § 13107(c).
Who gains and who loses around IShares U.S. Aerospace & Defense ETF (ITA)
Companies carried with this story
- ITA IShares U.S. Aerospace & Defense ETF
In “Defense Spending Projected To Rise With Deficit at 6.6% Of GDP,” IShares U.S. Aerospace & Defense ETF (ITA) is linked, with no stored direction, medium confidence. Reason on file: iShares U.S. Aerospace & Defense ETF: it holds defense and aerospace contractors. Linked by “defense” (defense) in this story
- XAR Spdr Series Trust
Spdr Series Trust (XAR) is linked, with no stored direction, medium confidence in the 26 Oct 2026 story “Defense Spending Projected To Rise With Deficit at 6.6% Of GDP.” Reason on file: SPDR S&P Aerospace & Defense ETF: it holds defense and aerospace contractors. Linked by “defense” (defense) in this story
- TLT Ishares Tr
In “Defense Spending Projected To Rise With Deficit at 6.6% Of GDP,” Ishares Tr (TLT) is linked, with no stored direction, medium confidence. Reason on file: iShares 20+ Year Treasury Bond ETF: Treasury bond prices move with interest-rate expectations. Linked by “deficit” (US interest rates) in this story
- LMT Lockheed Martin
For “Defense Spending Projected To Rise With Deficit at 6.6% Of GDP,” Lockheed Martin (LMT) is linked, with no stored direction, medium confidence. Reason on file: Lockheed Martin (guided missiles and space vehicles and parts): defense contractors gain when military spending rises. Linked by “defense” (defense) in this story
- RTX Rtx
For “Defense Spending Projected To Rise With Deficit at 6.6% Of GDP,” Rtx (RTX) is linked, with no stored direction, medium confidence. Reason on file: Rtx (aircraft engines and engine parts): defense contractors gain when military spending rises. Linked by “defense” (defense) in this story
- NOC Northrop Grumman
In “Defense Spending Projected To Rise With Deficit at 6.6% Of GDP,” Northrop Grumman (NOC) is linked, with no stored direction, medium confidence. Reason on file: Northrop Grumman (search, detection, navigation, guidance, aeronautical sys): defense contractors gain when military spending rises. Linked by “defense” (defense) in this story
- GD General Dynamics
General Dynamics (GD) is linked, with no stored direction, medium confidence in the 26 Oct 2026 story “Defense Spending Projected To Rise With Deficit at 6.6% Of GDP.” Reason on file: General Dynamics (ship and boat building and repairing): defense contractors gain when military spending rises. Linked by “defense” (defense) in this story
- JPM Jpmorgan Chase
In “Defense Spending Projected To Rise With Deficit at 6.6% Of GDP,” Jpmorgan Chase (JPM) is linked, with no stored direction, medium confidence. Reason on file: JPMorgan Chase (national commercial banks): rate changes move lenders' margins and borrowers' demand. Linked by “deficit” (US interest rates) in this story
IShares U.S. Aerospace & Defense ETF (ITA)
IShares U.S. Aerospace & Defense ETF (ITA) is the company in “Defense Spending Projected To Rise With Deficit at 6.6% Of GDP,” the 26 Oct 2026 this story story.
For IShares U.S. Aerospace & Defense ETF (ITA), the reason on file says iShares U.S. Aerospace & Defense ETF: it holds defense and aerospace contractors. Linked by “defense” (defense) in this story
A second company, Spdr Series Trust (XAR), is listed for a different reason: SPDR S&P Aerospace & Defense ETF: it holds defense and aerospace contractors. Linked by “defense” (defense) in this story
Dates and price levels for IShares U.S. Aerospace & Defense ETF (ITA)
ITA traded between 197.59 and 211.80 across 20 sessions. The latest close on file is 202.25. TLT traded between 76.44 and 81.94 across 20 sessions. The latest close on file is 79.46. XAR traded between 210.89 and 237.78 across 20 sessions. The latest close on file is 217.93.
How strong the case is around IShares U.S. Aerospace & Defense ETF (ITA)
46 out of 100Price not final
“Defense Spending Projected To Rise With Deficit at 6.6% Of GDP” scores 46 out of 100. The score uses 1 sources, and 8 linked companies. The price is not final yet.