Palantir Technologies Inc. (NYSE:PLTR) is trading lower in Thursday morning sessions despite a strong first-quarter report, as macro headwinds and geopolitical contract friction weigh on sentiment.
The primary catalyst behind the morning dip stems from broader market concerns. Tech and growth stocks face pressure as investors recalibrate their expectations for interest rates.
Market futures tracking major indices show weakness, with Nasdaq futures down 0.44% and S&P 500 futures dropping 0.26%.
Treasury Yields and Federal Reserve Outlook
Fixed-income markets continue to signal an environment of prolonged high interest rates, which traditionally pressures high-multiple tech companies like Palantir. The 10-year Treasury bond yielded 4.58%, while the two-year bond hovered at 4.06%.
Additionally, projections from CME Group's FedWatch tool indicate that markets are pricing in a 96.8% likelihood that the Federal Reserve will leave interest rates unchanged at its upcoming June meeting.
Axios Scoop Highlights Defense Contract Battle
According to a filing obtained by Axios on Thursday, Palantir is battling the Pentagon’s Defense Intelligence Agency for the ability to bid for a contract to modernize its data analytics system.
Palantir did not immediately respond to Benzinga's request for comment.
Palantir Stock: Key Levels To Watch
From a longer-term trend view, Palantir is still in a repair phase: the stock is trading 1.6% below its 20-day SMA, 5.3% below its 50-day SMA, 9.3% below its 100-day SMA, and 16.8% below its 200-day SMA.
The crossover picture also stays heavy, with the 20-day SMA below the 50-day SMA and a death cross in February (the 50-day SMA below the 200-day SMA).
RSI at 47.82 in the neutral zone.
Key levels are fairly defined for traders watching where the next trend decision could happen:
- Key Resistance: $162
- Key Support: $128.50
PLTR Stock Price Activity: Palantir Technologies shares were down 1.12% at $135.61 during premarket trading on Thursday, according to Benzinga Pro data.
Image via Shutterstock
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