Palantir Stock Tumbles As Broader Tech Weakens: What's Going On?

Palantir Technologies Inc. PLTR are trading lower Monday amid broader market weakness following cautious comments from Federal Reserve Chair Jerome Powell last week and President Donald Trump‘s criticism of Powell.

What To Know: On Wednesday, Powell warned that tariffs could push inflation higher and said the economy is showing signs of slowing, which spooked investors and raised concerns about future federal and commercial spending—key revenue sources for Palantir.

This drop comes despite several major developments for the company over the past month. Palantir was named in reports linking it to President Trump's proposed missile defense system, the "Golden Dome," alongside SpaceX and defense firm Anduril. Around the same time, the company announced a new partnership with Anthropic to bring its Claude AI model to U.S. government agencies through Palantir's FedStart platform.

Palantir also closed a fast-tracked deal with NATO for its Maven Smart System NATO (MSS NATO), a military AI platform designed to support intelligence and battlefield operations. The deal went from concept to signed contract in six months, a fast timeline for NATO procurement.

Despite these wins, Morgan Stanley cut its price target on Palantir from $95 to $90 while maintaining an Equal-Weight rating. The stock is still up over 300% in the past year but is now reacting more to macroeconomic risks than individual contract wins.

The stock remains technically strong in some areas, trading above its 20- and 200-day moving averages, but it dipped below its 50-day average and is showing mixed momentum signals.

PLTR Price Action: Palantir shares were down 4.52% at $89.54 at the time of writing, according to Benzinga Pro.

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