JPMorgan Chase & Co. is telling clients to buy the recent dip in European defense shares. The bank argues that despite a week-long decline, the sector remains fundamentally strong. This pullback presents a chance to add to positions in a market that has shown resilience.

The recommendation follows comments from former President Donald Trump questioning U.S. support for NATO allies. His remarks likely pressured defense stocks, which have rallied on expectations of sustained military spending. JPMorgan's call suggests the market may be overreacting to political noise rather than underlying fundamentals.

Investors should watch for upcoming earnings from major defense contractors. Companies like Airbus and Thales have benefited from increased European security budgets. A sustained buying opportunity would depend on whether governments maintain or increase defense outlays despite political shifts in the U.S.