The S&P 500 and Nasdaq both rose on Monday, but were on pace to change course even though Palantir topped Wall Street’s earnings and revenue targets for the third quarter. Investors were clearly looking for even more, which makes sense given the shares have surged 173% this year, meaning the stock now trades at more than 300 times future earnings.

“Overnight we are seeing a bit more negativity take over after Palantir fell more than 4% after hours,” Deutsche Bank macro strategist Jim Reid said. “Their results were good but markets were disappointed at the lack of company visibility for the whole of 2026.”

Wall Street was also trying to figure out the chances of a Federal Reserve interest-rate cut in December. It’s not helping that most economic data releases have been suspended for more than a month due to the ongoing government shutdown, now the joint-longest in history.