President Donald Trump sent defense stocks on a rollercoaster on Wednesday after threatening a total ban on stock buybacks and dividends until supply issues are resolved and following up with a proposed 50% increase in the military budget in 2027. 

Shares of drone manufacturers and autonomous systems providers benefited from both Trump's attack on the defense majors and the proposed expansion of military spending. 

RCAT stock is soaring. See the chart and price action here.

The Crackdown On Defense Majors

In a series of social media posts on Wednesday, Trump condemned the current pace of military manufacturing, specifically targeting the billions of dollars allocated to shareholder returns while key programs face years of backlogs.

The Ultimatum: Any defense contractor that fails to meet strict production and maintenance benchmarks will be prohibited from issuing dividends or repurchasing shares.

Executive Caps: Trump also proposed a $5 million cap on executive ...