GovCon Index Marked Poor Start to Q3 2024 as Wall Street Gained Strength

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Executive Mosaic’s GovCon Index did not have the best start in the third quarter of 2024. The index, which tracks the stock performances of 30 major government contractors, lost 1.31% week-on-week following significant losses on Monday and Friday. The $4,879.92 closing before the weekend reduced GCI’s year-to-date gain to 4.53%.

Wall Street’s major indexes had winning weeks. Besides their solid weekly gains, the Nasdaq Composite (+3.5%) and S&P 500 (+2%) posted new record highs during the shortened week. The blue-chip Dow Jones Industrial (+0.7%) recovered from its mid-week loss.

Palantir Technologies (NYSE: PLTR) repeated as the standout GCI constituent for the week. The AI stock advanced 7.97% in five days to $27.23, its best finish since late 2021. On a year-to-date basis, Palantir is up 58.59%. Meanwhile, ICF (Nasdaq: ICFI) declined 11.49% overall to $133.94 after extending its losing streak to five trading sessions.  

The higher unemployment rate in June (4.1%) and lower ten-year Treasury yield (4.272%) lifted the broader market Friday. Inflation-related data due next week, particularly the consumer price index, core PCI, and producer price index, could influence the Federal Reserve’s decision on interest rate cuts. Another earnings season is coming, and strong corporate earnings growth is a tailwind for stocks.  

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