Industrial Stocks Climb as Capital Flows Away From Tech

General Motors has entered formal discussions with Lockheed Martin to manufacture components for the defense contractor’s weapon systems. The move underscores a broader integration between automotive assembly capabilities and national security supply chains.

This shift coincides with President Trump’s decision to invoke the Defense Production Act, a Cold War-era statute designed to accelerate the manufacturing of critical munitions. The administration’s move follows internal concerns regarding potential weapons shortages after sustained usage in Iran. By leveraging the act, the White House aims to bolster domestic output to sustain the military industrial base during a period of heightened geopolitical friction.