President Donald Trump has demanded that defense companies cease stock buybacks and dividends until they increase investment in production and research. He also called for capping executive pay at $5 million, citing concerns over the pace of military equipment manufacturing and maintenance. These comments led to a selloff in defense contractor stocks, including Northrop Grumman, Lockheed Martin, and RTX Corp. Trump previously voiced similar sentiments in December, indicating a potential executive order to enforce these demands.