Tech Markets Wobble Despite Positive Global Open
What began as a promising start to the week following upbeat commentary on global tariffs over the weekend has turned into a more cautious session for tech markets. While the broader sentiment lifted major indices like the Nasdaq and S&P 500 at the open, momentum has since faded. Both indexes are now treading water, showing limited movement as investors wait for clarity on U.S.–China trade dynamics.
Palantir (PLTR) Finds Support Amid Defense Momentum
Amid the broader tech market’s pullback, Palantir Technologies (NYSE: PLTR) is holding onto gains sparked by fresh optimism around its defense-focused offerings. After hitting a low earlier in March amid renewed fears of potential Pentagon budget cuts, PLTR shares have rebounded. On Monday, the stock opened at $95.79, surging over 12% in early trading before retracing back toward the $92.40 level. Still, shares remain up by around 5% for the day.
PLTR Stock Chart Daily – The Bullish Rebound Continues
Investor sentiment brightened significantly following news that NATO’s Communications and Information Agency (NCIA) selected Palantir to provide its AI-driven military solution. The deployment of Palantir’s Mission Software Suite (MSS) marks a pivotal step for the Alliance as it evolves from a defensive to a more strategically agile force. This deal will equip NATO with real-time decision-making tools and battlefield-ready AI capabilities.
Market confidence was further bolstered by speculation that Palantir is poised to win a major U.S. Army contract under the Next-Generation Command and Control (NGC2) initiative. The company’s continued involvement with the Army’s Vantage data analytics platform also underscores its entrenched role in U.S. defense infrastructure, reinforcing its long-term growth prospects.
Broadcom (AVGO) Slides Despite Solid Earnings
In contrast, Broadcom Inc. (NASDAQ: AVGO) has not fared as well. After opening Monday with a modest 1.2% gain at $185.02, the stock quickly reversed and dropped over 3% to an intraday low of $176. The decline has pushed AVGO shares below the key 100-day simple moving average, which now acts as resistance near the $185 level.
Investor anxiety over potential new trade tariffs appears to be weighing on the semiconductor sector broadly. Comments made by Commerce Secretary Howard Lutnick raised fresh concerns, suggesting that electronics tariffs—including those on semiconductors—could take effect within the next one to two months. Though Broadcom’s chip manufacturing is based largely in Taiwan and not directly impacted by China’s retaliatory measures, the market remains cautious.
Despite the pullback, Broadcom’s fundamentals remain strong. The company reported first-quarter 2025 revenue of $14.9 billion, up 24.7% year-over-year and beating analyst expectations by $325 million. Its AI-centric semiconductor solutions and infrastructure software divisions drove performance, with infrastructure revenue up 47% to $6.7 billion and AI-related revenue surging 77% to $4.1 billion. Yet, the strong earnings report has so far been overshadowed by macroeconomic jitters.
Looking Ahead
While Palantir’s defense-centric growth story is gaining traction, Broadcom’s short-term outlook may remain volatile as the market awaits clarity on global trade policy. If tariff threats escalate, semiconductors and other tech-heavy sectors could remain under pressure. Still, robust fundamentals and increasing AI demand suggest the pullback in AVGO may be temporary.
Investors will likely keep a close eye on geopolitical developments and upcoming U.S. economic data this week to gauge whether recent gains can be sustained—or if another wave of risk-off sentiment will weigh down tech stocks further.
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