Global defense stocks surged following U.S. President Donald Trump's proposal for a $1.5 trillion military budget for 2027, a significant increase from the current fiscal year's approximately $900 billion. This proposed hike, aimed at bolstering military capabilities amid rising geopolitical tensions, led to substantial gains for major U.S. and some European defense companies. However, credit rating agency Moody's cautioned that such an increase could significantly widen U.S. fiscal deficits and add to national debt over the next decade.