U.S. aerospace and defense stocks ended their longest losing streak in more than a decade on Wednesday, after the federal fiscal 2020 budget was released earlier this week.
The S&P Supercomposite Aerospace and Defense Industry Index gained as much as 1.2 percent, while the S&P 500 Index rose nearly 1 percent.
The top gainers on the defense index included United Technologies, Huntington Ingalls, Raytheon, General Dynamics, Northrop Grumman, and Arconic.
Defense stocks had also been under pressure in the last few months of 2018 amid concerns about an impending peak in defense spending, even though valuations have now recovered from a late-December low.
President Donald Trump’s proposed $750 billion defense budget elicited mixed responses, with analysts noting that the plan prioritized funding for research and development over procurement.