SoundHound AI Inc (NASDAQ: SOUN) saw its stock price plummet by 6.77% in intraday trading on Thursday, as investors anxiously await the company's third-quarter earnings report scheduled for release after market close. The sharp decline comes amid a broader market downturn and growing macroeconomic concerns.

The sell-off in SoundHound AI shares appears to be driven by multiple factors. Firstly, the overall market sentiment has turned negative, with major indexes trading in the red. This pessimism has been fueled by recent comments from Federal Reserve official Austan Goolsbee, who expressed caution about the lack of recent inflation data due to a prolonged government shutdown. The uncertainty surrounding economic indicators has dampened hopes for potential rate cuts, adding to investor unease.

As SoundHound AI prepares to unveil its Q3 results, Wall Street analysts are projecting a loss of 6 cents per share on revenue of $40.33 million. Despite the current stock decline, many analysts have maintained bullish ratings on SOUN. Investors will be closely watching to see if the company can meet or exceed these estimates and provide strong forward guidance. The pressure is on for SoundHound AI to replicate its record-breaking second-quarter performance, where it surpassed expectations with $42.7 million in revenue and raised its full-year outlook. Recent strategic wins, including partnerships with Red Lobster and French insurer Apivia Courtage, may provide some optimism for the company's growth trajectory. However, the market's pre-earnings jitters and broader economic concerns appear to be overshadowing these positive developments in today's trading session.