Musk's doubt on $2 trillion government cut boosts government-services stocks

Investing.com -- Stocks of government services companies such as CACI, Parsons (NYSE:PSN ), Leidos Holdings (NYSE:LDOS ), and Booz Allen (NYSE:BAH ) Hamilton saw an increase on Friday.

This followed Elon Musk's expression of doubt over his government efficiency panel's ability to achieve $2 trillion in cuts to the US federal budget under the upcoming Trump administration, which comes as a retraction from his initial high target.

Musk, in a broadcasted discussion with Mark Penn, a political strategist and the chairman of Stagwell Inc., voiced his skepticism about reaching the $2 trillion mark.

He did, however, express optimism about achieving $1 trillion in cuts, stating they have a "good shot" at it.

Following Musk's comments, the market responded positively for government-services stocks.

CACI saw a rise of 2.6%, Booz Allen Hamilton increased by 2.7%, Leidos Holdings went up by 1.8%, and Parsons rose by 1.6%.

Other companies such as SAIC and KBR (NYSE:KBR ) also saw increases of 1.6% and 0.7% respectively. These increases outperformed the S&P 500 Index , which saw a decrease of 1.4%.

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Source: Investing.com