Market at lunch
Dow 54062.69 +884.28 (1.66%)
Nasdaq 26464.02 +529.11 (2.04%)
SP 500 7711.83 +111.33 (1.46%)
10-yr Note
NYSE Adv 1721 Dec 895 Vol 288.49 mln
Nasdaq Adv 2994 Dec 1107 Vol 4.78 bln
Industry Watch
Strong: Information Technology, Materials, Industrials, Financials
Weak: Utilities, Energy, Real Estate, Consumer Staples, Health Care, Consumer Discretionary
Moving the Market
–All-time highs for the S&P 500 and DJIA
–Semiconductor stocks rallying
–Crude oil retreats again amid reports of a potentail peace deal between the U.S. and Iran
Palantir Technologies (PLTR 158.65, +33.00, +26.26%) remains the top performing S&P 500 component after its Q2 results significantly exceeded expectations.
Adjusted EPS of $0.41 was nicely above, while revenue surged 93% year-over-year to $1.94 billion, its highest growth ever and roughly $136 million above the midpoint of its guidance. The stock continues to accelerate, fueled by its U.S. business, where revenue increased 115% year-over-year, 23% sequentially, to $1.57 billion.
U.S. government revenue rose 90% year-over-year to $809 million, while U.S. commercial revenue jumped 149% to $764 million. Demand and customer expansion indicators were also strong. U.S. commercial TCV bookings reached a record $2.13 billion, up 153% yr and 81% sequentially; net dollar retention increased to 157%, and RPO more than doubled to $4.9 billion. The strength across commercial and government customers reflects broader adoption of Palantir’s platform to operationalize AI. AIP connects models with proprietary data, security, and workflows, enabling customers to retain control over their data, logic, and actions as AI moves into core operations.
Palantir raised its FY26 revenue guidance by nearly $500 million to $8.15-$8.16 billion and now expects U.S. commercial revenue to exceed $3.42 billion, representing at least 134% growth. Q3 revenue guidance of $2.160-$2.164 billion implies a roughly 12% sequential increase.
Semiconductors back in the drivers seat
The PHLX Semiconductor Index is up 5.9%, pushing the information technology sector (+3.5%) firmly higher. The sector is also supported by a 3.7% surge in the iShares GS Software ETF (+3.8%), with Palantir Technologies (PLTR 158.85, +33.20, +26.42%) leading all S&P 500 names after a blowout earnings report.
Solid gains across several cyclical sectors, including the materials (+1.1%), financials (+0.9%), and industrials (+0.9%) sectors, with Caterpillar (CAT 876.80, +46.78, +5.64%) another standout after topping earnings expectations.
Defensive sectors continue to lag as investors continue to rotate into growth-oriented tech names, while the energy sector (-0.8%) slides amid another retreat in crude oil prices after Treasury Secretary Scott Bessent said the U.S. and Iran could soon reach an agreement to reopen the Strait of Hormuz.
Outside the S&P 500, the Russell 2000 (+1.2%) and S&P Mid Cap 400 (+1.2%) hold gains similar to those across the major averages.