Palantir Technologies Inc (NYSE:PLTR) shares are trading lower Thursday alongside several companies in the broader tech sector after Thursday's jobs data increased concerns about further rate hikes.
What Happened: The overall market is facing selling pressure. Thursday's jobs number showed that the labor market remains tight, which raised the likelihood of more interest rate hikes from the Federal Reserve. Continued rate hikes could negatively impact growth stocks.
The ADP National Employment Report showed that U.S. private employers added 497,000 jobs in June, well above estimates of 220,000.
Following the print, chances for a 0.25% hike in July climbed above 90%, per the CME FedWatch tool. Now all eyes turn to the non-farm payrolls report, which is due Friday morning.
Related Link: ADP Job Growth Soars By 500K, Jobless Claims Ticks Higher: Traders Raise Fed Hike Bets
Despite Thursday's pullback, Palantir shares are up more than 85% over the last three months. The rally accelerated in May after Palantir reported better-than-expected quarterly results and guided for continued profitability in each quarter of 2023, noting that it has been seeing strong demand for its new AI platform.
Several AI-related stocks have rallied significantly since the start of the year. Palantir held its first ever AIPCon at the start of June. CEO Alex Karp reiterated that the company has been seeing unprecedented demand for its AI products in recent months.
PLTR Price Action: Palantir shares were down 4.31% at $15.03 at the time of writing, per Benzinga Pro.
Photo: Cory Doctorow from Flickr.
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