Executive Mosaic’s GovCon Index rose 0.46% to $4,896.02 Friday as 22 of its constituents advanced. However, the index, which tracks the stock performances of 30 major government contractors, still ended 1.35% lower week-on-week due to the weak start in April.
Wall Street’s major indexes closed the week with losses despite bouncing back from their slump. The Dow Jones Industrial Average marked its worst weekly performance (-2.3%) this year, while the S&P 500 and Nasdaq Composite declined 1% and 0.8%, respectively.
General Dynamics (NYSE: GD) and Tetra Tech (Nasdaq: TTEK) were the steadiest GCI stocks, with an identical 4.49% gain in five days. Boeing (NYSE: BA) and Northrop Grumman (NYSE: NOC), the worst performers, lost 5.10% and 5.05% during the week. Meanwhile, market analysts see a tremendous growth potential for Palantir Technologies (NYSE: PLTR).
Palantir Technologies has partnered with Oracle (NYSE: ORCL), one of the world’s largest database management companies. Oracle will combine its distributed cloud and artificial intelligence infrastructure with Palantir’s AI and decision acceleration platforms. The companies will deliver secure cloud and AI solutions to governments and businesses worldwide.
Markets were shaky most of the week as the timing and number of rate cuts are still uncertain. Despite strong economic headwinds due to high-interest rates, job creation in March beat expectations. The Labor Department’s Bureau of Labor Statistics non-farm payrolls report showed 303,000 jobs last month versus the estimated 200,000. The unemployment rate inched lower to 3.8%.
Furthermore, senior central bank officials, including Fed governor Michelle Bowman and Dallas Fed president Lorie Logan, favor delaying rate cuts due to upside inflation risks. Instead of a cut, Bowman said a rate hike is possible if inflation remains elevated.
