Benzinga - Palantir Technologies (NYSE:PLTR) Inc (NYSE: PLTR) shares are trading lower Monday amid overall market weakness as stocks continue to fall following last week's Fed decision. Morgan Stanley (NYSE:MS) also cut its price target on the stock Monday morning.
What Happened: Morgan Stanley analyst Keith Weiss maintained Palantir with an Equal-Weight rating and lowered the price target from $10 to $8.
Several names in the broader technology sector are trading lower as investors continue to assess the Federal Reserve's most recent response to inflation.
Last week, the Fed raised its target range for the federal funds rate by 0.5%, bringing the new target up to a range of 4.25% to 4.5%.
In a press conference following the decision on rates, Fed Chair Jerome Powell reaffirmed the central bank's commitment to bringing inflation back down to its 2% goal. Although he acknowledged that recent data is encouraging, he indicated that it's not enough.
"The inflation data received so far from October and November show a welcome reduction in the monthly pace of price increases, but it will take substantially more evidence to get confidence that inflation is on a sustained downward path," Powell said.
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Rising treasury yields are also adding to the selling pressure in the broader technology sector.
The 10-Year Treasury yield was hovering around 3.594% at time of publication. Higher rates decrease the present value of future cash flows, which can negatively impact the valuations of growth stocks.
PLTR Price Action: Palantir is making new 52-week lows on Monday.
The stock was down 6.88% at $6.43 at time of publication, according to Benzinga Pro.
Photo: Cory Doctorow from Flickr.
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