U.S. Defense Stocks Jump on Pentagon’s Plan to Double Missile Production

U.S. defense stocks have rallied Monday premarket after the Wall Street Journal reported that the Pentagon has outlined an aggressive push to expand missile production, a move aimed at preparing for potential conflict with China.

The WSJ reported that military leaders are urging contractors to double or even quadruple the output of 12 critical weapons systems, including Patriot interceptors, Long Range Anti-Ship Missiles, the Standard Missile-6 and Precision Strike Missiles.

Deputy Defense Secretary Steve Feinberg is said to be taking a direct role through the Pentagon’s new Munitions Acceleration Council, holding weekly calls with executives to monitor progress, said the WSJ.

Shares in defense stock rose on the news: RTX has gained 2.5 percent, Lockheed Martin is up 2.3 percent, Northrop Grumman has added 0.9 percent, Boeing has risen 1.6% and L3 Harris has climbed 1 percent in premarket trading.