Trump Confirms US Still Has Ample Weapons Ahead of UNGA Speech

Aerospace and defense stocks fell broadly Tuesday after President Donald Trump raised the prospect of a negotiated end to the U.S. conflict with Iran during an address to the United Nations, while warning that military action could intensify if Tehran refuses to reach an agreement. V2X fell about 3.8%, Kratos Defense & Security Solutions dropped 3.7% and Karman Holdings declined 3.5%, while BAE Systems was down 2.9%, Northrop Grumman fell 2.8% and Lockheed Martin lost 2.7%; General Dynamics, Huntington Ingalls, L3Harris Technologies and RTX also traded lower. Trump told the UN General Assembly he expects the United States eventually to reach an agreement with Iran and believes Tehran will make a deal after the U.S. midterm elections on Nov. 3, and Reuters reported, citing a senior Iranian official, that Iran offered to reopen the Strait of Hormuz within seven days if Washington reduces military pressure and ends its blockade of Iranian ports, with Iran's UN delegation authorized to restart diplomatic negotiations. Trump also said the United States has ample munitions and is producing them at unprecedented levels, addressing concerns that months of fighting have depleted U.S. weapons inventories, including Tomahawk cruise missiles, Patriot interceptors and THAAD interceptors. He separately predicted progress toward ending Russia's war in Ukraine, saying the United States was working with Russian and Ukrainian leaders and suggesting an agreement could come sooner than expected, leaving defense investors weighing possible negotiated settlements against the longer-term need to replenish weapons stockpiles.