Executive Mosaic’s GovCon Index ended positive to start a new trading week, rising +0.73% to $4,840.82. Wall Street regained ground, notwithstanding tariff and inflation concerns. AI-related stocks, bannered by Palantir Technologies (Nasdaq: PLTR), lifted the Nasdaq Composite (+0.98%). The Dow Jones Industrial Average (+0.38%) and S&P 500 (+0.67%) settled higher.
U.S. President Donald Trump announced 25% tariffs on foreign steel and aluminum and said reciprocal tariffs on other countries are forthcoming. American steel producer Cleveland-Cliffs (NYSE: CLF) and primary aluminum producer Century Aluminum (Nasdaq: CENX) popped +17.93% and +10.22%, respectively, following the move to limit competition.
Losing Streak Ends
The GovCon Index snapped its three-day losing streak after posting its second daily win in six trading sessions this month. Palantir Technologies led the charge of 21 gainers with +5.23%. Its peers in the Nasdaq Composite, Mercury Systems (Nasdaq: MRCY), AeroVironment (Nasdaq: AVAV) and Kratos Defense & Security Solutions (Nasdaq: KTOS), advanced Monday. However, the Carlyle Group (Nasdaq: CG) topped nine decliners with -1.92%.
Palantir Technologies finished at a new record high of $116.85 and has gained +39.54% since reporting its Q4 and full-year 2024 results on Feb. 3, 2025. The software and data analytics firm provides rapid and scalable AI deployment into existing workflows of businesses in different industries.
Mercury Systems has gained nearly 12% in the last five trading sessions. The defense electronics company reported solid financial results in Q2 fiscal 2025, including a record $1.4 billion backlog. Financial services firm Baird upgraded its rating for MRCY last week from neutral to “outperform.”
AeroVironment is now up +18.36% year-to-date after the +2.95% gain. On Monday, its wholly owned subsidiary Arcturus UAV announced a contract award by the Danish Defence Acquisition and Logistics Organisation. The contract, with a ceiling value of $181 million, will deliver the JUMP20 medium uncrewed aircraft system to the Danish Armed Forces.
Inflation Could Flare Up
The U.S. Bureau of Labor Statistics will release the consumer price index, core CPI, producer price index and core PPI for January this week. Market analysts say the prospects of further rate cuts in 2025 look dim because a tariff war could flare up inflation.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,840.82 | 35.38 | 0.73% |
| NASDAQ | 19,714.27 | 190.87 | 0.98% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 116.65 | 5.80 | 5.23% |
| MRCY | 46.99 | 1.64 | 3.62% |
| AVAV | 182.15 | 5.22 | 2.95% |
| KTOS | 33.09 | 0.63 | 1.94% |
| FLR | 50.14 | 0.80 | 1.62% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CACI | 382.1 | 5.92 | 1.57% |
| PLTR | 116.65 | 5.80 | 5.23% |
| NOC | 474.37 | 5.79 | 1.24% |
| AVAV | 182.15 | 5.22 | 2.95% |
| LMT | 448.22 | 3.83 | 0.86% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| CG | 51.48 | -1.01 | -1.92% |
| BAESY | 58.47 | -0.90 | -1.52% |
| ICFI | 115 | -1.27 | -1.09% |
| TXT | 73.93 | -0.59 | -0.79% |
| CW | 353.05 | -1.96 | -0.55% |
