Stocks slipped Tuesday as fresh economic data reignited stagflation fears on Wall Street, overshadowing a blowout quarter from Palantir Technologies Inc. (NASDAQ:PLTR), the top-performing S&P 500 stock of 2025.
- PLTR’s momentum accelerates. Check the stock chart here.
The July Institute for Supply Management (ISM) Services Purchasing Managers Index (PMI) fell to 50.1%, barely clinging to expansion territory and well below expectations of 51.5%.
More concerning was a sharp jump in service-sector prices: the ISM Prices Index surged to 68.5%, its highest level since November 2022, indicating intensifying inflationary pressures even as activity cools. Meanwhile, the employment momentum further slowed, validating the weak jobs report released last Friday, which President Trump insists, without evidence, was “rigged.”
Despite the macro drag, Palantir delivered a standout performance. The artificial intelligence-driven software company exceeded Wall Street’s revenue and earnings forecasts, sending its stock up more than 8%.
The rally pushed its market capitalization above $400 billion for the first time.
Further signs of tariff-driven economic impacts came from the latest trade data. The U.S. trade deficit narrowed sharply to $60.2 billion in June, well below expectations of $61.6 billion and the lowest since September 2023. The drop was driven by a …