I think it's a combination of the market not believing the reality of the unprecedented policy shift and things only getting clearer the last ~2 weeks. If you look at that time frame, US defense stock is definitely suffering: https://finance.yahoo.com/sectors/industrials/aerospace-defe... especially if you compare this to Korean (https://finance.yahoo.com/quote/KDEF/) or European defense stock (https://finance.yahoo.com/quote/EUAD/ and https://finance.yahoo.com/quote/RNMBY/ for a longer perspective since EUAD is new). A large portion of that money could have gone to the US defense sector, but that's not an option anymore.