Why Palantir Stock Sank Today
Written by Keith Noonan for The Motley Fool -> Palantir stock sold off today as the market pivoted away from growth-dependent AI stocks. The U.S. economy added more jobs than expected in May, but that could actually be negative for stocks. With inflation still coming in hot an
Palantir stock sold off today as the market pivoted away from growth-dependent AI stocks.
The U.S. economy added more jobs than expected in May, but that could actually be negative for stocks.
With inflation still coming in hot and jobs growth looking solid, the Federal Reserve may opt to raise interest rates.
Palantir (NASDAQ: PLTR) stock saw another round of pullbacks in Friday's trading. The artificial intelligence (AI) and data analytics specialist's share price slid 4.3% in the daily session and had been off as much as 5.4% at one point in the session.
The broader market got hit with a strong round of selling pressures today as investors braced for the possibility that the Federal Reserve is on course to raise interest rates this year. The S&P 500 ended the day down 2.6%, and the Nasdaq Composite closed out the session down 4.2%.
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The tech-heavy Nasdaq Composite index registered its biggest single-day pullback since April 2025 today, and there are some complicated catalysts at play. Valuations for AI stocks were already under pressure after the market had a staunchly negative reaction to strong quarterly results from Broadcom , and the latest jobs report from the Bureau of Labor Statistics (BLS) has only served to elevate investors' anxieties.
The BLS's May jobs report actually showed that the U.S. economy added 172,000 nonfarm jobs in May -- beating the forecast from surveyed economists targeting net job additions of 80,000 in the month . While stronger-than-expected jobs growth might intuitively seem like a positive, the report has actually added to anxieties surrounding valuation levels in the market .
