Government contractor stocks rise after report that Musk will leave role as governing partner

Shares of government contractors rise after Politico report says U.S. President Donald Trump has told his inner circle, including members of his Cabinet, that Tesla CEO Elon Musk will be stepping back in the coming weeks from his current role as governing partner

Leidos LDOS.N up 5.2%, Science Applications International SAIC.O up 4.2%, Booz Allen Hamilton BAH.N up 7%, while CACI International CACI.N rose 8.4%

Trump had named Musk and former Republican presidential candidate Vivek Ramaswamy as heads of the newly created Department of Government Efficiency (DOGE) to "cut wasteful expenditures, and restructure Federal Agencies"

Analysts had expressed concerns about DOGE and how it may result in budget cuts and policy changes that reduce contractor earnings

The DOGE have been implementing measures to slash spending and reduce the size of the federal workforce