Hot April CPI pressures tech shares; SOUN, HUBS, ASAN, ZM and AKAM fall

Technology and software stocks fell in afternoon trading after April CPI rose 3.8% from a year earlier, above economists’ forecasts, reducing expectations for near-term Federal Reserve rate cuts. Higher-for-longer interest rates weighed on growth valuations, pressuring shares including SoundHound AI (SOUN), HubSpot (HUBS), Asana (ASAN), Zoom (ZM) and Akamai (AKAM). Investors reassessed future earnings assumptions across software and AI-linked names as inflation remained above the Fed’s target. SoundHound AI was also under pressure after recent first-quarter results showed revenue rose 51.7% year over year to $44.2 million, topping estimates, while its GAAP loss of 11 cents a share was wider than the expected 10-cent loss. The company reported quarterly cash burn of $26.73 million and an operating margin of minus 51.3%. SoundHound shares were down 25.1% year to date at $7.94, 62.9% below their 52-week high of $21.40.