Is the data analytic stock Palantir Technologies Inc. (PLTR) losing ground?

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Risk-off sentiment has seized the market recently, resulting in large pullbacks for firms trading at growth-dependent valuations, as a result of soaring inflation, imminent interest rate rises and ongoing events relating to Russia’s invasion of Ukraine. While no fresh business-specific developments are pulling PLTR’s valuation down, the company’s stock is falling in line with the overall market.

This year’s adverse market pressures have been exacerbated by Russia’s invasion of Ukraine and ongoing developments in the conflict have caused additional bouts of volatility this week. Following the country’s refusal to comply with the demand that energy supplies be paid in Rubles, Russia cut off gas deliveries to Bulgaria and Poland this week and Russian officials also made comments indicating that military actions in its war with Ukraine are in danger of escalating significantly.
Aside from those obvious concerns, the market has grown increasingly anxious about the impact of inflation and the interest rate rises that will almost certainly be enacted in an attempt to contain it. PLTR stock has been heavily discounted this week due to a mix of geopolitical and macroeconomic factors and it appears that things may get worse before they get better.

The United States Department of Commerce said on Thursday that the GDP fell 1.4 % year over year in the first quarter. This surprise drop in GDP might cause greater market volatility in the short term and it speaks to a potentially dangerous macroeconomic dynamic. Some economists believe the Federal Reserve’s decision to raise interest rates significantly this year would lead to a recession but hefty rate hikes appear to be required to keep inflation under control. With the US economy already declining despite the Fed only raising rates by 25 basis points in March and inflation remaining high, there are concerning factors at play that might lead to difficult times for growth stocks and the stock market in general.

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