The sudden reversal shows how the hottest AI trade and top-performing stock of the year is colliding with a broader market rotation out of big tech.

Wall Street braced for results from retail giants as rising concerns over inflation cloud the path to an interest rate cut.

Palantir stock (NASDAQ: PLTR) took a sharp hit on Wednesday, falling about 7% as high-valuation tech stocks pulled back across the market. The AI and data analytics company had hit record highs earlier in the month,

Among the Nasdaq 100 stocks, Analog Devices ADI and Palo Alto Networks PANW rallied 3.7% and 1.6%, respectively, making them some of the best performers at the market open. On the downside, Intel INTC and Micron Technology MU tumbled 4.1% and 3.6%, respectively.

Shares in Palantir fell as much as 9% in late trading on Tuesday amid a broad AI pullback and a critical short-seller report.

Investing.com -- Palantir Technologies (NYSE:NASDAQ: PLTR) stock fell 2% Monday morning after short seller Citron Research expressed caution about the company’s valuation for the second time.

The Dow, S&P 500, and Nasdaq are falling. The tech selloff extends a second day and markets shrug off the latest Federal Reserve minutes.

Detailed price information for Palantir Technologies Inc Cl A (PLTR-Q) from The Globe and Mail including charting and trades.