Palantir and U.S. markets rally on weak jobs data

U.S. stock markets experienced a significant rally following disappointing labor market data. In July, non-farm payrolls decreased by 23,000 jobs, falling well short of the anticipated growth of approximately 80,000. This weakness led investors to believe that further interest rate hikes by the Federal Reserve are unlikely.

Market indices responded positively to the news, with the S&P 500 hitting new highs and the Nasdaq 100 rising nearly 5%. Palantir emerged as a standout performer, with its shares increasing by nearly 40% in a single week following the release of second-quarter results. The company reported a 93% year-over-year revenue increase to $1.94 billion, exceeding analyst expectations.

In addition to the tech surge, a broad market rally was noted, with approximately 336 stocks in the S&P 500 advancing on a recent Friday. Corporate fundamentals also supported the market, as over 85% of S&P 500 companies exceeded analyst earnings estimates.