Musk’s Doubt About $2 Trillion in Government Cuts Boosts Government Services Shares By Investing.com
Investing.com — Stocks of government services companies such as CACI, Parsons (NYSE: ), Leidos Holdings (NYSE: ), and Booz Allen (NYSE: ) Hamilton posted gains on Friday.
This comes after Elon Musk expressed doubt about his government efficiency committee’s ability to achieve $2 trillion in cuts to the US federal budget under the incoming Trump administration, which comes as a retreat from his initial lofty goal.
In a broadcast discussion with Mark Penn, political strategist and chairman of Stagwell Inc., Musk expressed skepticism about reaching the $2 trillion mark.
However, he expressed optimism about achieving the $1 trillion in cuts, saying they have a “good chance” of doing so.
Following Musk’s comments, the market reacted positively to government services stocks.
CACI rose by 2.6%, Booz Allen Hamilton by 2.7%, Leidos Holdings by 1.8% and Parsons by 1.6%.
Other companies such as SAIC and KBR (NYSE: ) also posted gains of 1.6% and 0.7%, respectively. These increases exceeded , which recorded a decrease of 1.4%.
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