Trump proposes blocking defense firm payouts to boost weapons production, sparking stock drops.

Trump announced he would block defense contractors from paying dividends or conducting stock buybacks until they boost weapons production and modernize facilities, citing delays, high costs, and excessive executive pay. The remarks, made during a press briefing, triggered sharp declines in defense stocks, including Lockheed Martin, Northrop Grumman, and General Dynamics, though RTX saw a modest rebound after hours. Trump criticized programs like the F-35 and Sentinel ICBM for inefficiencies and proposed capping executive pay at $5 million. While no enforcement mechanisms or timelines were provided, the administration emphasized reinvestment in national security over shareholder returns.