What's Going On With Palantir Technologies Stock?

What's Going On With Palantir Technologies Stock?

Palantir Technologies Inc PLTR shares are trading lower Monday as growth stocks sell off on Fed rate hike fears, which has driven a risk-off sentiment. 

What Happened: The Fed raised its target fed funds rate by 0.75% in June and again in July. The two consecutive 0.75% rate hikes mark the most aggressive rate increases since 1994. Still, the central bank is fighting the highest inflation numbers in more than 40 years.

The bond market is pricing in a 56.5% chance of another 0.75% hike next month and a 43.5% chance of a 0.5% hike. Higher rates decrease the present value of future cash flows, which can negatively impact the valuations of growth stocks. 

Why It Matters: Several growth names are trading lower amid overall market weakness in anticipation of the Federal Reserve's Jackson Hole symposium on Friday. Jackson Hole is an annual economic summit featuring central bankers, academics and economists from around the world. During the event, Fed chair Jay Powell is expected to give a speech on inflation.

Related Link: Jackson Hole Symposium Preview: Why Powell's Friday Speech Is Critical For Investors

PLTR Price Action: Palantir has a 52-week high of $18.84 and a 52-week low of $6.44.

The stock was down 4.46% at $8.13 at time of publication.

Photo: Cory Doctorow from Flickr.

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