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Shares of U.S. defense companies fell after Democrats won the midterm elections, amid concerns that Pentagon budgets would face tighter scrutiny. Lockheed Martin dropped 6.5% and L3Harris about 8%, while shares of other companies fell by 3% to 5%. Jefferies analysts expect the 2027 defense budget to come in near $1.15 trillion, rather than President Donald Trump’s $1.5 trillion request, compared with the current budget of $901 billion.
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