Global defense stocks rallied Thursday following Donald Trump's proposal for a $1.5 trillion U.S. military budget for 2027, a significant increase from the current year's approximately $900 billion. Major U.S. defense companies like Northrop Grumman and Lockheed Martin saw substantial gains, recovering from a prior day's dip. While analysts suggest the spending hike could offset concerns about potential capital return restrictions, credit rating agency Moody's warned of widening fiscal deficits and increased U.S. debt.