Drone stocks rallied Monday as retail interest ramped up in the sector following a Palantir partnership with Red Cat Holdings and amid a flurry of mysterious New Jersey sightings that Wall Street believes could boost funding for the industry. Red Cat shares rallied more than 25% on news that its working with Palantir to integrate visual navigation software into its drones. The partnership news comes as recent sightings across the northeast have reignited interest in the sector, while also fueling national security concerns. FBI officials on Thursday said there was "no evidence" that the drones jeopardize "national security and public safety." Many on Wall Street view the incoming White House administration as a potential boon that could boost funding for the sector and U.S.-made drones.

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Persons: Palantir, Donald Trump Jr, Elon Musk, Donald Trump's, William Blair, Louie DiPalma, Yun Li Organizations: Red Cat Holdings, Red Cat, Nvidia, Tesla, WSB, Machines, Defense, Security Solutions, Enterprise, White, National Defense, Senate Locations: Jersey, U.S, China