Shares in Palantir Technologies fell sharply late Friday on no apparent news. But the retreat in Palantir stock did coincide with a rebalancing of Russell U.S. indexes.
Also, on Monday S&P Global's rebalancing of its benchmark indexes, including the S&P 500, takes effect. Palantir stock joined the index on Sept. 23. Shares have jumped roughly 250% since the company joined.
Palantir stock fell on Friday even though the S&P 500 and Nasdaq hit record highs, capping a powerful week for equities.
According to a recent Reuters article, the Russell rebalancing was expected to pressure Palantir stock because of trading by passive managers that track benchmark indexes.
While Palantir joined a Russell index that tracks 1,000 large-cap names, a reshuffling forced small-cap funds tracking the Russell 2000 to unload Palantir stock as it moved into a different index.
Meanwhile, Barron's in a recent article said the S&P 500 rebalancing on Monday could also impact Palantir stock.
Palantir stock fell 9.4% on Friday. With the retreat, shares in the maker of data analytics software have still gained 73% in 2025.
Palantir, Accenture Partnership
On Monday, shares rebounded amid an announcement with information technology services firm Accenture. Palantir and Accenture Federal Services said they will partner to seek contracts from U.S. government agencies. Palantir stock rose nearly 5% to 137.21 in early trading.
Further, Palantir stock has advanced in 2025 amid views that the company seems poised to win more U.S. government business under the Trump administration.
Also, retail investor enthusiasm for generative artificial intelligence plays has lifted PLTR stock, although commercial-related revenue has yet to ramp up.
Still, Wall Street analysts now do not expect most software makers to monetize generative AI, or "conversational AI," in a material way until 2026.
PLTR Stock Technical Analysis
Shares hit a new all-time high of 144.86 on June 16. Palantir is among AI stocks to watch.
Meanwhile, Palantir's Relative Strength Rating stands at 99 out of a best-possible 99.
PLTR stock holds an Accumulation/Distribution Rating of B-plus. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
Also, Palantir stock holds a Composite Rating of 99 out of a best-possible 99, according to IBD Stock Check-up. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
PLTR stock has a 21-day ATR of 5%. The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
IBD suggests stocks with ATRs of up to 8%.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
