Trump Demands Defense Firms Halt Buybacks, Boost Production

• Donald Trump demanded defense companies stop stock buybacks and dividends, urging investment in production and research.
• He called for executive pay to be capped at $5 million until "NEW and MODERN Production Plants" are built.
• Trump criticized firms for not building military equipment fast enough or maintaining it properly, prioritizing shareholder returns over investment.
• Shares of major US defense contractors like Northrop Grumman, Lockheed Martin, RTX, and General Dynamics dropped following his comments.
• Trump's demand echoes previous criticisms from his administration officials regarding slow, over-budget defense procurement.

Why It Matters: Trump's demand for defense firms to prioritize production over shareholder returns triggered a sector selloff.