U.S. Defense Spending to Reach $1 Trillion, Boosting Stocks Amid Ongoing Appropriations Process

The US government plans significant increases in defense spending for 2026, with $150 billion already appropriated. Defense stocks have already repriced, but more upside is likely as funding becomes more certain. Key initiatives still in line for funding include hypersonic weapons, F-47 fighter jets, and increased space force funding. Lockheed Martin and Northrop Grumman are stocks to watch due to their involvement in missile and space projects.