Upstart, SoundHound AI Shares Fall as Strong Jobs Report Dims Rate Cut Hopes

Upstart (UPST) and SoundHound AI (SOUN) shares dropped on June 6, 2026, after a stronger-than-expected U.S. jobs report reduced the likelihood of near-term Federal Reserve interest rate cuts. The economy added 172,000 nonfarm payrolls in May, far surpassing economists’ forecast of 85,000, while the unemployment rate held steady at 4.3%. The robust data eased concerns of an economic slowdown but dampened expectations for monetary easing, creating headwinds for growth-oriented technology stocks. Upstart’s decline extended recent volatility; the stock fell 6.7% on June 4 amid a broader software sector pullback. The stock is down 35.7% year-to-date, trading at $29.46—65% below its July 2025 peak of $84.13. SoundHound AI also retreated, reflecting the recalibration of investor expectations for a prolonged high-rate environment, which pressures equity valuations by discounting future earnings. The moves underscored the sensitivity of speculative tech names to shifts in monetary policy outlook.