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GovCon Index Notched Weekly Gain to End Downward Trend

Executive Mosaic’s GovCon Index inched lower Friday but the substantial gains in three of four trading sessions averted a fourth straight weekly loss. The index, which tracks the stock performances of 30 major government contractors, advanced 1.89% week-on-week to finish higher at $4,979.17.

The S&P 500 (+0.6%) and Nasdaq Composite (+0.003%) had thin weekly gains, notwithstanding several new closing highs. On the other hand, the blue-chip Dow Jones Industrial Average (+1.45%) registered its best winning week since May.

Notable performers on the GovCon Index are Accenture (NYSE: ACN) and V2X (NYSE: VVX), gaining 9.44% and 8.8%, respectively, during the shortened trading week. Accenture popped 7.29% on Thursday after the professional services company reported over $900 million in generative AI bookings. 

AeroVironment (Nasdaq: AVAV) and Palantir Technologies (NYSE: PLTR) tanked 6.93% and 6.73% Friday but remain the top two GCI performers year-to-date, with +50.33% and +38.85%. Market analysts see Palantir Technologies rising soon following a new outer space deal. 

On Thursday, Starlab Space, a global joint venture of Airbus, MDA Space, Mitsubishi Corporation, and Voyager Space, made Palantir Technologies a strategic partner. The software company and major AI player will be the exclusive supplier of enterprise-wide software data management solutions for the Starlab commercial space station.

With the U.S. Federal Reserve on pause, the easing of its monetary policy remains uncertain. However, despite moderating inflation and cooling consumer spending, several Fed officials expect only one rate cut this year. 

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