Nasdaq Index: Axon and Palantir Rally as Broader US Stocks Turn Bearish

Nasdaq Dips as Weak Services Data Hits Confidence; Axon and Palantir Buck the Trend

U.S. stocks edged lower Tuesday, with the Nasdaq pressured by disappointing services data and a fourth straight day of oil declines. Despite gains in global markets, Wall Street lagged as traders weighed soft economic signals and sector underperformance.

The ISM Services Index held steady in July, signaling stagnation in the services sector. New orders barely moved while employment weakened further—suggesting that businesses remain cautious. Compounding concerns, input costs jumped at the fastest pace in nearly three years, raising new inflationary flags even as demand cools.

Which Sectors Struggled Most as Economic Worries Deepened?

The broader market leaned negative as nine of eleven S&P sectors closed in the red.

Health care fell 0.4%, with Vertex Pharmaceuticals plunging 18.86% following disappointing clinical trial results.

Energy dropped 0.45% to extend its recent slide, tracking crude oil’s fourth straight session of losses.

Financials and utilities also slipped, down 0.27% and 0.88%, respectively, as bond yields edged lower on the weak data.

Consumer staples were nearly flat, while technology dipped 0.34%, with mixed performances across its major components.

Communication services slipped 0.37%, weighed down by media and streaming names.

Can Nasdaq Winners Like Axon and Palantir Sustain Momentum?

Despite the broader Nasdaq decline, select names posted strong gains. Axon Enterprise surged 15.73% after upbeat earnings and guidance, leading the index.

Palantir rose 7.58%, helped by bullish commentary around its AI-driven platform growth.

Intel gained 4.18%, rebounding from recent lows following optimism over chip demand. MercadoLibre and Copart added 2.91% and 1.96%, respectively, on strong volume and positive analyst commentary.

On the downside, Vertex’s sharp drop set the tone for healthcare, while GlobalFoundries fell 9.31% on a revenue miss. IDEXX and Datadog each shed over 3%, and Diamondback Energy lost 3.57%, reflecting broader weakness in biotech and energy stocks.

What’s the Market Outlook Heading Into Key Data and Fed Comments?

Traders are closely eyeing Thursday’s jobless claims and next week’s CPI and PPI reports for fresh signals on labor market resilience and inflation pressure. Fed officials are also scheduled to speak later this week, which could offer hints on the rate path. With services data raising concerns about consumer demand, the focus now shifts to whether slowing growth can tame inflation without triggering a recession.

Caution is likely to prevail unless economic indicators or earnings surprises reignite buying interest, particularly in growth-heavy sectors like tech and consumer discretionary.

More Information in our Economic Calendar.