The second half of 2025 got off to a muted start, as the S&P 500 dipped 0.1% on July 1 and hovered flat on July 2.
According to ADP’s latest report, the private sector shed 33,000 jobs in June, marking its first monthly drop since March 2023 and raising concerns about the U.S. economy. Economists had expected an increase of 100,000 jobs.
In April, the market was weighed down by uncertainty around President Donald Trump’s tariffs and economic growth. But those concerns began to ease in May and improved further in June.
That V-shaped recovery has now pushed both the S&P 500 and Nasdaq Composite into overbought territory, according to Wall Street veteran fund manager Chris Versace. Overbuying means investors may have rushed in too quickly, often pushing the price higher than its true value.
Versace manages TheStreet Pro’s portfolio, which outperformed the S&P 500 in the first half of the year. He noted that the McClellan Oscillator, a technical analysis tool used to measure market breadth and momentum, has yet to signal an overbought condition. That suggests the market may still have room to move higher, Versace wrote in a recent note on TheStreet Pro.
Still, Versace flagged growing risks tied to heightened market expectations around upcoming potential catalysts.
“As the market grinds higher, the greater the probability that this week’s economic data, pending trade deal announcements, or the Trump fiscal policy bill that gets passed could disappoint the market,” he warned.
Versace is making adjustments to the Pro Portfolio, revisiting a few price targets and panic points for closely watched names like Palantir (PLTR) and Nvidia (NVDA) .
Palantir stock price target raised to $160
Palantir is known for providing AI-driven data analytics software to the U.S. government, military, and commercial clients worldwide, including JPMorgan Chase, Airbus, and Merck.
The company reported stronger-than-expected first-quarter revenue in early May and raised its full-year outlook as demand for AI tools increased. “We are delivering the operating system for the modern enterprise in the era of AI,” CEO Alex Karp said.
Related: Veteran trader boosts Palantir price target on defense-spending outlook
Palantir shares are up roughly 74% in 2025 and hit a record close of $144.25 on June 26.
Versace has raised the price target for Palantir to $160 from $140.
Verasce cited several recent developments as reasons for the increase: NATO leaders pledging to boost defense spending to 5% of GDP by 2035, former President Trump’s scheduled “AI Action Day” on July 23, and Palantir’s expanded partnership with Accenture Federal Services to deepen its presence in U.S. government agencies.
However, Versace noted, “Should market forces pull PLTR shares back toward their 50-day moving average near $125, that would be a reason for us to reconsider our Two rating.” The current Two rating reflects stocks he would add on pullbacks or following successful technical support tests.
Nvidia stock price target raised to $185
For Nvidia, Versace has a new price target of $185, up from $175 amid strengthening demand signals for AI accelerators and data center chips. The stock has gained 14% year-to-date and closed at a new high of $157.99 on June 30.
Several developments have driven Nvidia’s rally since its April low. The stock first began to recover after the U.S. and China agreed to temporarily pause the elevated tariffs. Sentiment improved further when the Trump administration scrapped the Biden-era AI diffusion rule, which was another export control on advanced AI chips.
Related: Analyst sends bold message on quantum computing stocks after Nvidia CEO’s pivot
In May, Nvidia got another boost from its announcements to supply AI chips to Saudi Arabia’s Humain, a rising tech player in the region.
On May 28, Nvidia posted strong fiscal first-quarter results. Adjusted earnings came in at 96 cents per share on $44.06 billion in revenue, beating Wall Street’s estimates of 93 cents and $43.31 billion.
More Nvidia:
- Analysts revamp forecast for Nvidia-backed AI stock
- Nvidia stock could surge after surprising Taiwan Semi news
- Nvidia CEO sends blunt 7-word message on quantum computing
Last week, Versace trimmed the Nvidia position, selling at a price near its all-time high. “Should the market melt-up continue, odds are we may do some additional register ringing,” he added.
Alongside these target updates, Versace is also raising the Palantir panic point to $95 from $90, and Nvidia’s to $120 from $110.
Related: Veteran analyst sends blunt message on what’s next for stocks
