For some investors, that’s a call to load up on defense stocks.Security-related shares have been on a tear this year, with Germany’s Rheinmetall AG ranking as the best-performer in the MSCI World Index as money managers anticipate a jump in military spending.

The Ukraine crisis has taken an unexpected turn following a heated exchange at the Oval Office between Ukrainian President Volodymyr Zelensky and US Vice President J.D.

The U.S. has been Ukraine’s biggest military backer since Russia’s full-scale invasion began three years ago. The suspension of that aid by the Trump administration doesn’t mean Ukraine’s defenses will quickly collapse.

European stock markets hit fresh record highs as European leaders pushed forward with plans to boost defense spending and support Ukraine. Defense stocks added $35 billion in market capitalization. France’s CAC 40 Index surpassed its May record high, while Germany’s DAX Index gained 3.4% for its biggest one-day advance since 2022.

European stocks rallied after Germany announced hundreds of billions of euros in defense and infrastructure investment, with addditional boosts coming from China’s ambitious growth targets and signals that the Trump administration may walk back some trade tariff measures.

After decades of under spending on the military, Berlin now wants to ramp up its defence capabilities, realising Europe can no longer count on the United States to provide securit