Group 1 - Defense stocks experienced a significant increase, with AeroVironment leading the rise at 14%, followed by Lockheed Martin, Northrop Grumman, and Science Applications International, which saw gains of up to 5% before market close [1] - The defense sector has remained resilient amid uncertainty, bolstered by industry-specific developments such as progress on the 2026 Pentagon budget and potential tariff negotiations that may involve foreign allies purchasing U.S.-made arms [2] - Vietnam's Prime Minister suggested purchasing American defense equipment to improve relations, with Lockheed's C-130 Hercules transport planes frequently mentioned in these discussions [3] Group 2 - AeroVironment's stock surge was driven by a double upgrade to strong buy from Raymond James, highlighting the company's position as a leader among "defense disruptors" in the UAV market [4] - Concerns persist regarding potential contract cutbacks for government IT specialists like SAIC, as the Department of Government Efficiency reviews procurement processes, which may lead to delays in contract allocations [5] - The proposed trade deals and budget allocations are not finalized, and even if approved, their impact on companies' financials will take years to materialize, suggesting caution for investors despite the attractiveness of defense stocks for income and modest growth [6]