Palantir Shares Dip Amid Fed Rate Cut Decision

Palantir Technologies (PLTR) shares fell as much as 5.3% intraday before paring losses to 2% by mid-afternoon, underperforming broader indices. The decline followed the Federal Reserve's decision to implement a modest 25-basis-point rate cut, disappointing investors who had priced in more aggressive monetary easing.

The AI software leader's growth-sensitive valuation faced pressure despite its strong positioning in both public and private sectors. Market participants had anticipated a 50-basis-point reduction after weak August jobs data and downward revisions to prior reports, creating a 'buy the rumor, sell the news' scenario.

Palantir's long-term growth narrative remains intact, with increasing adoption of AI solutions across industries. However, the stock's premium valuation continues to spark debate about its near-term risk-reward profile during periods of macroeconomic uncertainty.