Amplitude, Toast, Zeta Global, Teradata, SoundHound AI Stocks Drop; Fed Rate Cut Outlook Shifts

Afternoon trading saw Amplitude, Toast, Zeta Global, Teradata, and SoundHound AI among those falling as investors grew more selective in the AI-driven rally. The Nasdaq declined 1.5%, with the S&P 500 and Dow also down. A stronger-than-expected jobs report suggested the first potential Fed rate cut may be in July rather than June, pressuring growth sectors and creating a headwind for software stocks. Data showed non-farm payrolls rose, employment held near a 50-year low, and unemployment fell, reinforcing expectations of a delayed easing. This shift in policy timing increased volatility and prompted a broader sell-off as investors reassess valuations and future earnings. Teradata’s shares, volatile with 12 moves exceeding 5% in the past year, were hit on the heels of a Barclays report indicating sticky incumbents in SaaS benefit from the protracted transition from seat-based to AI-driven subscriptions, providing a moat for established providers.