Palantir Stock Drops 4% Amid Economic Concerns and Insider Selling

Palantir Technologies shares fell sharply on Friday, closing down 4% after an intraday drop of 5.2%. The decline followed a triple whammy of negative catalysts: disappointing jobs data, looming semiconductor tariffs, and insider stock sales.

The August jobs report stunned markets with just 22,000 positions added—less than a third of economists' 75,000 expectation. While initially boosting hopes for Fed easing, the data ultimately fueled concerns about broader economic fragility. June's figures were revised downward for the second time, revealing the first monthly job loss since pandemic recovery began.

President TRUMP compounded market jitters by announcing "fairly substantial" tariffs targeting semiconductor companies that maintain offshore production. Three Palantir insiders capitalized on recent highs, with CFO David Glazer liquidating 81,000 shares on September 2.

The AI software firm remains particularly vulnerable to macroeconomic shifts given its premium valuation. Friday's selloff reflects growing risk aversion as investors digest conflicting signals about the health of the economic expansion.