April 8 - Palantir (PLTR, Financial) bounced back Tuesday with a solid 7% gain, clawing back some ground after a rough stretch that saw shares tumble more than 20% in the past few days. The comeback comes as investors weigh the upside of new military contracts against growing concerns around global trade tensions.

The big drop last week was no accident. On April 4, the U.S. rolled out a 34% tariff on Chinese imports, and China quickly hit back. That one-two punch rattled markets, especially for government-focused tech names like Palantir. Even though the company isn't deeply tied to global supply chains, its heavy reliance on public sector contracts made it vulnerable to the broader narrative.

On the positive side, the U.S. Army scrapped plans for a new internal system and opted to stick with Palantir's existing Vantage platform, a move that could bring in around $115 million in recurring revenue. That helped ease some nerves, but not everyone's sold. Goldman Sachs is still on the fence, pointing to the stock's “rich” valuation and big retail following.

Meanwhile, Palantir's trying to turn the chaos into opportunity. It's pushing its Artificial Intelligence Platform to help clients model tariff shocks and supply chain risks. Whether that's enough to keep momentum going remains to be seen.