The Stockholm Stock Exchange, whose broad index stood at minus 3.3 percent at closing, was not alone in being pressured. The other leading European markets also retreated to a similar extent, with the Frankfurt Stock Exchange's DAX index leading the way with a decline of 3.3 percent.
The decline on the Stockholm Stock Exchange was broad, with only three OMXS30 companies in the black: Essity, Astra Zeneca, and Telia, which rose 2.2, 1.1, and 0.3 percent, respectively.
The investment company Kinnevik was hit the hardest, falling 6.5 percent.
The decline on the Stockholm Stock Exchange is the largest in a single trading day since the so-called bank panic on March 15, 2023, when the exchange's broad index fell 3.8 percent.
The EU Commission announced on Tuesday that it hopes to release approximately 9,000 billion kronor for defense investments. Among other things, member states will be exempt from budget rules to build up their defenses.
The news caused defense company Saab's share to start climbing from zero to plus 1.7 percent just before 1 pm, but at closing, the share stood at minus 2.5 percent.
Corrected: An earlier version of the text contained an incorrect description of today's decline.
