Dow Jones Falters While the Nasdaq Index Climbs on Palantir’s Upbeat Earnings Forecast
While the Nasdaq rose on Monday, the Dow Jones closed lower, as investors exhibited new uncertainty despite encouraging Palantir Q3 earnings
Quick overview
- The Dow Jones Industrial Average fell 225.55 points (-0.47%) while the Nasdaq Composite rose 109.77 points (+0.46%) amid mixed investor sentiment.
- Palantir Technologies reported strong Q3 earnings, surpassing expectations, but its stock initially surged before giving back gains, reflecting market skepticism.
- Amazon and Nvidia reached record highs, driven by positive developments, but analysts caution that the momentum may not be sustainable.
- Overall, the market outlook remains cautious as traders express fatigue and concerns about slowing growth and narrowing corporate margins.
While the Nasdaq rose on Monday, the Dow Jones closed lower, as investors exhibited new uncertainty despite encouraging Palantir Q3 earnings and isolated advances in major tech names.
Dow Drags as Broader Market Weakens
The Dow Jones Industrial Average led the declines, falling 225.55 points (-0.47%) to 47,337.32, as cyclical stocks continued to lose momentum. Market breadth remained weak, with many sectors struggling to find support amid persistent concerns about slowing growth and narrowing corporate margins.
Closing Levels for Main U.S. Stock Indices
- Dow Jones Industrial Average: fell 225.55 points (-0.47%) to 47,337.32
- S&P 500: rose 11.84 points (+0.17%) to 6,852.04
- NASDAQ Composite: climbed 109.77 points (+0.46%) to 23,834.72
Tech Tries to Carry the Market
The S&P 500 managed a modest gain, rising 11.84 points (+0.17%) to 6,852.04, while the NASDAQ Composite added 109.77 points (+0.46%) to 23,834.72, driven largely by strength in a handful of high-profile tech names. However, even those advances appeared fragile, with traders increasingly questioning the durability of the recent tech-led rebound.
Top Performers
- Cipher Mining Inc. (CIFR): +21.93%
- Amkor Technology, Inc. (AMKR): +17.22%
- Lumen Technologies, Inc. (LUMN): +15.08%
- Amazon.com (AMZN): +4.03%
- Uber Technologies (UBER): +3.40%
- SoFi Technologies (SOFI): +3.20%
- Tesla (TSLA): +2.59%
- NVIDIA (NVDA): +2.20%
- United Airlines Holdings (UAL): +2.20%
- Delta Air Lines (DAL): +1.97%
Palantir released the Q3 earnings after the bell, sending the stock jumping higher to $240 initially but then it gave all back ending where it started close to $200, as the hype faded.
Palantir Earnings Overview
Palantir Technologies delivered a surprisingly strong quarterly report, providing a rare bright spot in an otherwise cautious market session. The company posted earnings of $0.21 per share, easily surpassing the $0.17 consensus estimate, with revenue rising to $1.18 billion versus expectations of $1.09 billion. Guidance was also upbeat, with Q4 revenue projected between $1.327–$1.331 billion, well above forecasts.
Despite persistent concerns over valuation and the sustainability of its government-heavy contracts, the results reinforced Palantir’s growing foothold in AI-driven analytics. The upbeat forecast helped lift sentiment in the tech sector, even as broader market indices like the Dow struggled to maintain momentum.
Earnings Spotlight – Palantir Technologies (PLTR)
- EPS: $0.21 vs. $0.17 expected
- Revenue: $1.18 billion vs. $1.09 billion expected
- Q4 Guidance: $1.327 billion – $1.331 billion (ahead of $1.19 billion forecast)
- Full-Year Outlook: $4.396 billion – $4.400 billion vs. $4.15 billion consensus
Amazon and Nvidia Extend Highs, But Momentum May Fade
Amazon.com (AMZN) climbed 4.02% to a record $254.03, after announcing a $38 billion cloud deal with OpenAI, a move that briefly reignited investor enthusiasm for the AI sector. Yet, some analysts warn that the stock’s relentless surge leaves little room for disappointment.
Nvidia (NVDA) also closed at a new record high, adding 2.17%, as chip optimism persisted — though rising valuations and cooling demand signals in parts of the semiconductor market hint that the rally may be losing steam.
Meta Continues Its Post-Earnings Collapse
Meta Platforms (META) remains under intense pressure, sliding another 16.65% from its Wednesday peak of $759.16 to $636.18, after last week’s results revealed heavier capital spending and weaker margins. Despite being up 8.9% for the year, the stock has rapidly lost its leadership position, underscoring growing unease across the broader AI and tech complex.
Cautious Outlook Ahead
With the next round of earnings on deck, traders are showing signs of fatigue, as enthusiasm for mega-cap tech fades and the rest of the market struggles to keep pace. Despite isolated bright spots, the tone on Wall Street remains cautious — and the gap between optimism and reality appears to be widening once again.
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