Palantir Technologies (PLTR +2.44%) stock is surging Friday. The software specialist's share price was up 6.3% as of 3:20 p.m. ET. At the same point in the day's trading, the S&P 500 (^GSPC 0.38%) and Nasdaq Composite (^IXIC 0.13%) were up 1.1% and 1.3%, respectively.
After sell-offs in Thursday's trading, growth stocks are rebounding today -- and Palantir is benefiting from the momentum. The latest U.S. jobs report from the Bureau of Labor Statistics (BLS) has investors feeling bullish and is helping to power a rebound for growth stocks after sell-offs yesterday.
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Palantir stock surges on latest jobs report
Growth stocks are seeing strong bullish momentum on the heels of the jobs report the BLS published this morning. The report showed that the U.S. economy added 139,000 jobs in May -- ahead of the 125,000 job additions that had been forecast by Dow Jones. While higher-than-expected hiring data could have been taken as an indication that the U.S. economy is still running hot, the report also cut April's added jobs tally by 30,000 and March's job growth count by 65,000.
NASDAQ: PLTR
Key Data Points
All in, the May jobs report has helped support the position that the Federal Reserve has a workable path to an interest rate cut this year. The prospect has growth investors excited, and it's likely that a rate cut would be a substantial bullish catalyst for Palantir stock.
What's next for Palantir?
Palantir has one of the strongest positions in artificial intelligence (AI) software, and there's a high likelihood the business will continue to see very strong growth tailwinds in conjunction with rising demand for its Artificial Intelligence Platform (AIP) service and other offerings. But with the company valued at roughly 77 times expected sales and approximately 219 times expected earnings, shares undoubtedly come with a high level of risk. Palantir appears to be a great company and will likely deliver impressive returns for patient investors, but its valuation profile also opens the door for significant volatility.
