Investors are probably better off not overreacting to daily news headlines. Then again, certain headlines and resulting declines in stock prices can set up entry points for long-term investors.

Uncertainty over cuts to military spending have hammered key contractors in recent weeks. The worst-feared scenario doesn’t seem to be happening, though.

Palantir stock (PLTR) fell more than 5% Thursday, adding to Wednesday's 10% drop following a Washington Post report that said the Trump administration has told the Pentagon to plan for massive budget cuts over the next five years,

Shares of Northrop Grumman and Lockheed Martin were under pressure after President Donald Trump raised the idea of large cuts to defense spending.

Shares in Asia and Europe gained on Tuesday, lifted by defense and military stocks as U.S. and Russian officials meet in Saudi Arabia to discuss ending the war in Ukraine. Japan’s Nikkei 225, the Hang Seng in Hong Kong,