Rising bond yields and inflation concerns have put significant pressure on tech stocks, including Palantir Technologies, which is a key holding of the GraniteShares 2x Long PLTR Daily ETF. On January 13, 2025, the 10-year Treasury yield reached a 14-month high of 4.77%, intensifying fears of inflation and reducing the appeal of growth stocks. This environment has led to a sell-off in high-growth technology shares, with Palantir and Nvidia both experiencing a 3% decline in premarket trading. The broader tech sector has been hit hard, as investors brace for upcoming inflation data, including the Producer Price Index (PPI) and Consumer Price Index (CPI) reports, which are expected to influence Federal Reserve policy and market sentiment.
The tech sector's downturn is further exacerbated by new government restrictions on AI chip exports, affecting major players like Nvidia and Tesla. These restrictions are anticipated to limit growth potential in the semiconductor and electric vehicle industries, contributing to the negative sentiment surrounding tech stocks. Additionally, Palantir's recent massive rally, driven by its AI capabilities, has raised concerns about its valuation, with analysts warning that the stock may be priced for perfection. This has led to increased volatility and selling pressure as investors reassess their positions in the face of rising interest rates and regulatory challenges.
The GraniteShares 2x Long PLTR Daily ETF (PTIR) is currently trading at $95.02, down 6.71% from its previous close.