Palantir Stock Dips Amid Jobs Data and Insider Selling Concerns

Palantir Technologies (PLTR) shares fell 2.6% by midday Friday, underperforming broader indices as the S&P 500 and Nasdaq Composite edged down 0.5% and 0.2% respectively. The AI software company's stock had earlier plunged as much as 5.2% before paring losses.

The selloff followed a disappointing August jobs report showing just 22,000 new positions created—far below the 75,000 economists expected. While weak employment figures initially fueled speculation about imminent Federal Reserve rate cuts, Optimism faded as investors weighed potential economic weakness.

Adding pressure, SEC filings revealed three Palantir insiders recently offloaded shares. The dual pressures of macroeconomic uncertainty and insider selling created a perfect storm for the typically volatile stock.