U.S. stocks were boosted to new all-time highs on Monday after several news outlets reported on a substantial increase in military spending by the Trump administration.
According to unnamed officials at the Office of Management and Budget, Trump's budget proposal seeks to ramp up defense spending to $54 billion.
A corresponding decrease in spending on non-defense programs, particularly foreign aid and agencies like the EPA, is also incorporated to make the budget revenue neutral.
On Friday, speaking at the Conservative Political Action Conference, the president said his administration will preside over one of the “biggest military buildups in history.”
The unnamed official explained that a large portion of the spending will be directed to the Pentagon, according to a report by TheHill.
American stock rallied after Trump’s speech at CPAC last Friday, however, today, the S&P 500 and Dow Jones Industrial Average hit all-time highs of 2369.2 at 10:50 a.m. EST, and 20841.8 at 10:40 a.m. EST, respectively:
While the Dollar Index rallied simultaneously with equities on Friday, the dollar sold-off on Monday down to 100.69 - just 3 points away from Friday’s lows at 100.66:
NYSE building photo by Jonathan Gross
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