Executive Mosaic’s GovCon Index sunk deeper, declining 1.83% at $5,160.07. The fourth-straight daily loss followed the index’s 6.2% plunge the day before. Meanwhile, the Dow Jones Industrial Average (-0.70%) and S&P 500 (-1.32%) suffered their worst drops since Election Day.
Large-cap tech stocks slumped and pulled down the Nasdaq Composite (-2.24%). The headwind was Fed Chairman Jerome Powell’s comments that the central bank is not hurrying to lower interest rates. Some market analysts say robust economic data, notably higher-than-expected retail sales in October, reduced the chances of a December rate cut.
Massive Weekly Loss
The GovCon Index extended its downward plunge, highlighted by Thursday’s sharp drop. Decliners outnumbered gainers, 25 to 5. ICF (Nasdaq: ICFI), the worst performer, tumbled -11.48%, while lead gainer Palantir Technologies (NYSE: PLTR) popped 11.14%. The index representing the top defense and government contractors lost 8.52% for the week.
Palantir Technologies hit a new 52-week high of $66 in intra-day trading before settling at $65.77, still a fresh record high. On Friday, the big data analytics firm announced a change in its listing site to the Nasdaq from the NYSE. Effective Nov. 26, the AI stock will trade on the tech-heavy index.
Fluor Corporation (NYSE: FLR), the lone gainer on Nov. 14, rose 2.2%. Its joint venture with AtkinsRealis (TSX: ATRL) and two other construction firms received a limited notice to proceed with the design phase of Units 3 and 4 at the Cernavoda Nuclear Power Plant in Romania. The project is part of the bilateral cooperation between the US and Romania.
Boeing (NYSE: BA), one of the five advancers, issued pink slips to over 400 workers, including engineers and scientists. The plane maker clarified that overstaffing, not the recent union strike, triggered the layoffs.
Policy Uncertainty
Market observers think policy uncertainty, particularly on new tariffs by the incoming administration, could heighten market volatility in the coming months. The government contracting industry might also see changes if the advisory Department of Government Efficiency starts a cost-cutting drive.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 5,160.07 | -94.66 | -1.83% |
| Dow Jones Industrial Average | 43,444.99 | -305.87 | -0.70% |
| S&P 500 | 5,870.62 | -78.55 | -1.32% |
| NASDAQ | 18,680.12 | -427.53 | -2.24% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 65.77 | 6.59 | 11.14% |
| FLR | 51.92 | 1.12 | 2.20% |
| BA | 140.19 | 2.05 | 1.48% |
| TTEK | 41.27 | 0.31 | 0.76% |
| GIB | 107.39 | 0.31 | 0.29% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 65.77 | 6.59 | 11.14% |
| BA | 140.19 | 2.05 | 1.48% |
| FLR | 51.92 | 1.12 | 2.20% |
| TTEK | 41.27 | 0.31 | 0.76% |
| GIB | 107.39 | 0.31 | 0.29% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| ICFI | 137.2 | -17.79 | -11.48% |
| LDOS | 160.65 | -7.31 | -4.35% |
| CACI | 470.79 | -20.53 | -4.18% |
| VVX | 56.96 | -2.46 | -4.14% |
| MRCY | 39.32 | -1.52 | -3.72% |
