AsianFin -- Palantir Technologies closed at an all-time high on Tuesday, jumping 8% to finish just above $128, as optimism around U.S.-China tariff reductions fueled a broad tech and AI rally. The stock also set a new intraday high during the session.

The rally followed Monday’s announcement that the U.S. and China had agreed to mutually ease tariffs for a 90-day period, sparking renewed enthusiasm across equity markets—particularly among AI-driven companies like Palantir.

Tuesday’s gains erased last week’s pullback, when shares sank 12% following the company’s quarterly report. Despite beating analyst expectations and raising its full-year guidance, investor reactions were tempered by lofty expectations.

So far in 2025, Palantir shares have surged more than 70%, and are up over 500% compared to a year ago.

Adding to the bullish sentiment, Bank of America analysts on Monday called Palantir a “market definer” in the AI space. The bank highlighted the company’s recent deal with NATO—secured despite pressure to choose a European vendor—as evidence of Palantir’s superior capabilities.