The stock market rebounded as the recent tariff war showed signs of easing.
On April 9, President Donald Trump unveiled a 90-day pause for the “reciprocal” tariffs he imposed earlier on several countries, except for China.
In response to Beijing’s 84% retaliatory tariff, Trump announced a 125% tariff on Chinese imports, escalating trade tensions between the world’s two largest economies.
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The S&P 500 climbed 10.5% Wednesday afternoon, offering a reprieve from last week’s selloff. Still, the index remains down 7.8% year-to-date.
Several popular tech stocks also bounced back from recent declines. Nvidia (NVDA) and Palantir (PLTR) , which surged 171% and 340% last year, rose 18% and 19% on April 9. Tesla (TSLA) also gained 22%.
Despite the rally, Nvidia is still down nearly 15% year-to-date in 2025, and Tesla remains more than 33% lower.
Trump also urged investors to remain calm. In a post on Truth Social, he said, “This is a great time to buy.”
Related: Cathie Wood buys $9 million of tumbling tech stock amid tariff crash
In a market defined by rapid swings and geopolitical uncertainty, stock selection has become increasingly critical as investors seek to avoid companies more vulnerable to tariff-related disruptions.
Unlike peers who are more vulnerable to global supply chains, analysts say Palantir seems better insulated from the tariff impacts. The stock is up 22% year-to-date.
Palantir’s valuation remains elevated, raising concerns about the sustainability of the stock performance.
The U.S. is Palantir’s “primary objective”
Palantir is known for providing AI-driven data analytics software to the U.S. government and military and commercial clients. Its stock has gained eightfold over the past five years as investors rush to early adopters in the AI space.
In a January interview with CNBC, CEO Alex Karp said Palantir is poised to lead the transformation of American companies and asserted that bolstering the U.S. is its “primary objective.”
Related: Bank of America gives eye-popping Nvidia stock forecast amid tariffs
In February, the company posted fourth-quarter results that surpassed Wall Street expectations.
The company reported adjusted earnings of 14 cents a share for the quarter, beating the consensus estimate of 11 cents. Revenue was $828 million, up 36% year over year and exceeding the consensus of $776 million. Full-year revenue for 2024 grew 29% to $2.87 billion.
Palantir also provided stronger-than-expected guidance. For the full year 2025, it forecast sales between $3.74 billion and $3.76 billion, topping the average estimate of $3.52 billion.
Following the earnings, Palantir stock hit a closing peak of $124.62 on Feb. 18.
But in recent weeks, the stock pulled back to below $90, impacted by budget cuts at its crucial client, the Pentagon, and the broad market sell-off.
Palantir’s valuation remains elevated, raising concerns about the sustainability of the stock performance. The company currently trades at 142.86x forward earnings—well above other software providers like Microsoft (MSFT) at 23.7x and Salesforce (CRM) at 21.93x.
Palantir would be “least impacted,” Citi says
Following the tariff announcements, Citi updated views on data analytics stocks, including Palantir and Snowflake (SNOW) .
“Most of our data analytics names would be relatively insulated given their diversified user base across verticals and regions,” Citi analysts led by Tyler Radke wrote in a research report.
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“SNOW and PLTR would be least impacted given the lower exposure to international and have been earlier beneficiaries from the ramping AI spend among Enterprises,” the firm added.
Citi has a neutral rating on Palantir’s stock and a buy rating for Snowflake’s. However, the firm flags Palantir as a “high-risk” stock.
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