Definition
A military alliance of 32 countries in North America and Europe, whose members agree that an attack on one is an attack on all. In market news, it comes up mostly through how much member countries agree to spend on defense.
The story
On Nov 4, 2026, ING's Carsten Brzeski described one downbeat scenario after the midterms as renewed tension over tariffs and NATO allies' military spending (AP). US defense stocks also fell that day, with Lockheed Martin down 6.9% and Northrop Grumman down 4.5% (AP).
Why markets watch it
Defense budgets set by NATO members can move defense stocks and government spending plans on both sides of the Atlantic.
Connects to
Last seen in
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms