Executive Mosaic’s GovCon Index fell sharply to $4,608.95 (-1.02%) as new headwinds emerged to start the week. The CBOE Volatility Index, or VIX, rose to 27.86, its highest level since Aug. 2024. Wall Street’s fear gauge surged due to the possibility of a recession in an intensified trade war.
The tech-heavy Nasdaq Composite plunged 4%, with all Magnificent Seven stocks posting heavy losses. Moreover, the Dow Jones Industrial Average (-2.08%) shed 890.01 points, while the S&P 500 Index (-2.70%) fell to its lowest level since Sept. last year. Palantir Technologies (Nasdaq: PLTR) was among the worst performers Monday.
Decliners overwhelm advancers
The GovCon Index lost steam following two winning weeks. Palantir Technologies led 20 decliners. However, Kratos Defense & Security Solutions (Nasdaq: KTOS) and ICF International (Nasdaq: ICFI), both Nasdaq components, topped the 10 gainers. AeroVironment (Nasdaq: AVAV) is on an eight-day losing run.
On Monday, Kratos announced that its OpenEdge 2500 integration-ready digitizer has achieved official Digital IF Interoperability Consortium compliance. The digitizer is part of the company’s OpenSpace family of dynamic ground system products and one of the first two products in the industry to obtain DIFI compliance.
ICF extended its winning streak to three days. Last week, the global consulting and digital services provider secured two contracts worth $210 million in Europe. One is with the European Commission, and the second is from the U.K. Both contracts are for four years.
Palantir Technologies, GCI’s best-performing stock in 2024, plunged -10.05%, eroding its year-to-date gain to only +0.99%. The AI stock closed at $76.38 per share or -38.71% lower from its all-time high of $124.62 recorded on Feb. 18. Nonetheless, Goldman Sachs (NYSE: GS) analysts remain bullish on PLTR. They forecast strong AI-enabled revenue over the next two years.
Period of transition
Wall Street pulled back after U.S. President Donald Trump warned of a transition period from his administration’s tariff moves. Inflation-related reports due this week such as consumer price and producer price indexes could also influence market movement.
Market Summary
| Index | Price | Net Change | % Change |
|---|---|---|---|
| GovCon Index Daily Average | 4,608.95 | -47.13 | -1.02% |
| Dow Jones Industrial Average | 41,911.71 | -890.01 | -2.08% |
| NASDAQ | 17,468.32 | -727.90 | -4.00% |
Top 5 GovCon Index Daily Percentage Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| KTOS | 29.18 | 1.89 | 6.93% |
| ICFI | 88 | 3.35 | 3.96% |
| NOC | 495.45 | 8.93 | 1.84% |
| LMT | 479.17 | 5.52 | 1.17% |
| HII | 197.03 | 1.06 | 0.54% |
Top 5 GovCon Index Daily Net Performers
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| NOC | 495.45 | 8.93 | 1.84% |
| LMT | 479.17 | 5.52 | 1.17% |
| ICFI | 88 | 3.35 | 3.96% |
| KTOS | 29.18 | 1.89 | 6.93% |
| HII | 197.03 | 1.06 | 0.54% |
Top 5 GovCon Index Daily Percentage Decliners
| Symbol | Price | Net Change | % Change |
|---|---|---|---|
| PLTR | 76.38 | -8.53 | -10.05% |
| CG | 40.03 | -2.97 | -6.91% |
| AVAV | 123.35 | -8.98 | -6.79% |
| FLR | 34.29 | -1.85 | -5.12% |
| BA | 148.15 | -6.03 | -3.91% |
