US Stock Market Move | The Pentagon's "cutting off rations" triggers a sell-off wave, Palantir (PLTR.US) drops more than 4% in pre-market trading.

On Monday, Palantir (PLTR.US) fell over 4% in pre-market trading to $97.20. Earlier reports suggested that U.S. Defense Secretary Haggis plans to cut U.S. military spending by 8% over the next five years, which could jeopardize a major source of revenue for the company. Subsequently, the stock experienced its largest three-day decline of 2022. Tim Pagliara, Chief Investment Officer of Capwealth Advisors, stated, "While the current P/E ratio is somewhat realistic, I don't think its value is high, and there are still significant execution risks and uncertainties. It's hard to predict growth before we know what the military budget will look like."