Analysts say U.S. defense contractors should expect a continued rise in arms exports following Donald Trumpâs victory Wednesday in the U.S. presidential election, Reuters reported Wednesday.
Mike StoneÂ andÂ Patricia Zengerle wrote analysts have said they think Trump would continue to support the supply of U.S. weapons systems to allied countries to help them develop their defense capabilities despite his call for international partnersÂ in East Asia and Europe to shell out more funds for their own defense.
TheÂ Defense Security Cooperation Agency announced on Tuesday that the U.S. posted $33.6 billion inÂ total foreign military sales for fiscal year 2016.
Reuters also reported that stocks of major defense firms such as Raytheon, General Dynamics, andÂ Northrop GrummanÂ hit record highs on Wednesday as investors turned bullish on expectations of increased defense spending under Trumpâs administration.
Executive MosaicâsÂ GovCon IndexÂ rose 5 percent for a record one-day gain andÂ closing value WednesdayÂ as investors bet on possible increase in defense outlays under the incoming administration.