Trump Backs Fast-Track Funding Deal: What a Shutdown Avoidance Could Mean for Defense and Industrial Stocks

President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:

“I am working hard with Speaker Johnson to get the current funding deal, which passed in the Senate last week, through the House and to my desk, where I will sign it into Law, IMMEDIATELY! We need to get the Government open, and I hope all Republicans and Democrats will join me in supporting this Bill, and send it to my desk WITHOUT DELAY. There can be NO CHANGES at this time. We will work together in good faith to address the issues that have been raised, but we cannot have another long, pointless, and destructive Shutdown that will hurt our Country so badly — One that will not benefit Republicans or Democrats. I hope everyone will vote, YES!”

How Will Trump’s Statement Affect the Stock Market?

This latest post has the potential to affect the stock market. That’s because Trump’s support for swiftly passing the existing funding deal and avoiding a government shutdown reduces near-term fiscal uncertainty, which is generally positive for broad industrials and defense-related stocks. Defense contractors like Lockheed Martin, Northrop Grumman, and RTX, as well as aerospace and defense ETFs (PPA, XAR, ITA), may benefit from increased confidence that federal defense spending will remain uninterrupted. Broad industrial ETFs (VIS, XLI, IYJ) could also see improved sentiment and risk appetite as investors anticipate continued government demand, fewer operational disruptions, and a more stable macro policy backdrop.

Here are some of the stocks that might be affected:
Lockheed Martin ((LMT)),
Northrop Grumman Corp. ((NOC)),
Rtx Corporation ((RTX)),
Vanguard Industrials ETF ((VIS)),
Industrial Select Sector SPDR Fund ((XLI)),
Invesco Aerospace & Defense ETF ((PPA)),
SPDR S&P Aerospace & Defense ETF ((XAR)),
iShares U.S. Aerospace & Defense ETF ((ITA)),
iShares U.S. Industrials ETF ((IYJ)).