US market today: Wall Street trades flat; defence stocks rally on Donald Trump’s military spending push

US stock indices were largely subdued in early Thursday trade, even as defence companies rallied sharply after President Donald Trump said he wants to significantly raise military spending.The S&P 500 slipped 0.2% in early trading, though it remained close to its recent all-time high. The Dow Jones Industrial Average was down 109 points, or 0.2%, while the Nasdaq composite fell 0.4%, AP reported.Gains were concentrated in defence stocks after Trump said he aims to lift US military spending to $1.5 trillion in 2027 from about $901 billion, as part of plans to build what he called a “Dream Military”. Northrop Grumman jumped 8.2%, Lockheed Martin surged 8.8%, and L3Harris Technologies rose 8%, more than recouping losses from the previous session.RTX underperformed its peers, rising 3.4%, after Trump criticised the company for being the “slowest in increasing their volume”. The president also signed an executive order calling on the Pentagon to include clauses in future contracts that would bar defence contractors from buying back their own shares during periods of underperformance on government contracts.Bond yields edged higher following mixed US economic data. Weekly jobless claims rose, signalling some increase in layoffs, but broadly in line with expectations. Separate data showed stronger-than-expected gains in worker productivity and an unexpected narrowing of the US trade deficit in October.Oil prices climbed, extending recent volatility. US benchmark crude rose 2.1% to $57.18 a barrel, while Brent crude gained 2% to $61.14. Prices have been swinging amid uncertainty following Trump’s removal of Venezuela’s leader last weekend, even as expectations of ample global supply continue to weigh on the market.Global markets were mostly lower. Japan’s Nikkei 225 dropped 1.6%, while Hong Kong’s Hang Seng fell 1.2%. In the bond market, the yield on the 10-year US Treasury rose to 4.18% from 4.15% late Wednesday.